SalmonChile says that greater investment is needed to make the industry viable. (Photo: FIS)

Salmon farms cover only 5 pct of 'sanitary investment'

CHILE
Tuesday, January 26, 2010, 15:40 (GMT + 9)

The Chilean Salmon Industry Association AG (SalmonChile) clarified that Salmon farming companies to date have only invested 5 per cent of the USD 400 million necessary towards productive renovation, an essential move to making the activity viable in the long term.

Sector companies invested some USD 20 million in trying to overcome the crisis caused by outbreaks of the infectious salmon anaemia (ISA) virus in several domestic farming centres, and their sanitary, economic and labour consequences.

The reason: companies do nto yet have access to “fresh capital,” which would allow them to pursue normal production levels prior to 2007, when the ISA outbreaks began, Diario Financiero reports.

For now, companies have focused their efforts on production in recirculation fish-farms, and treatment plants for fish mortalities, as well as on overhauling ships that transport salmon.

Within the figure tallied by SalmonChile, USD 7.5 million corresponds to investments of company suppliers, which have acceded to credits with financial guarantees issued by the Production Development Corporation (CORFO).

Also, from May to date, only USD 60.5 million was allocated for environmental salmon farming projects in process, whereas sanitary investments executed and on hold do not surpass 17 per cent of the amount necessary to implement the new bio-security model.

For the general manager of SalmonChile, Carlos Odebret, the March delay of the bill of the General Fisheries and Aquaculture Law (LGPA) directly influences this situation, critical for the industry.

“He who does not pass the Law today puts a halt to all the advances that there could be, as far as counting on fresh resources, and forces us to wait. In practice, any reactivation in the industry is delayed two months because of this. That is the crux of the problem,” Odebret asserted.

In addition, the bank “expects to have a very clear regulation to know in which sphere the industry will move,” he emphasised.

Finally, he said that the injection of work capital by means of renegotiations “is too low to generate any effect on production.”

Last week, the legislators of the House of Representatives passed the majority of articles dispatched by the Senate in the third proceeding, but rejected three regulations regarding mortgages and labour.

The differences will have to be sorted out in the Mixed Commission, which will be summoned during the first week of March, when Congress returns from recess, and the new Administration of President-elect Sebastian Pinera takes office.

Related article:

- House halts advance of aquaculture law

By Analia Murias
[email protected]
www.seafood.media

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