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The salmon industry must invest heavily to keep up with the new rules. (Photo: Siges/ FIS)
Aquaculture law requirements to demand USD 1 bln plus
CHILE
Thursday, April 08, 2010, 23:50 (GMT + 9)
Chilean salmon farming companies will have to invest more than USD 1 billion between 2011 and 2014 to fulfil the new environmental and sanitary requirements set forth in the new General Fisheries and Aquaculture Law (LGPA), passed last month.
Some USD 600 million would have to be allocated to working capital, and the rest, USD 400 million, to the development of new infrastructure to increase security and control levels that prevent contagion among fish, El Mercurio reports.
The industry has faced a sanitary, environmental and labour crisis since 2007 as a result of the outbreaks of the infectious salmon anaemia (ISA) virus that spread among the farming centres in the south.
The estimated investment was calculated by the banking sector, which assesses sector development following the renegotiation of liabilities with salmon farming firms, while totalled USD 1.6 billion.
According to the president of the Salmon Industry Association of Chile AG (SalmonChile), Cesar Barros, the sector has not yet quantified the figure that will be needed to adapt to the new norms and begin the industry’s takeoff.
"Everything depends on the speed it takes to recover certain levels of production. All the investment is not from one day to the next,” Barros said.
Although many resources will be needed, salmon farming “is [also] going to produce significant income,” he added.
For Barros, the new investments will likely raise production costs up to 30 per cent.
Next year will be more complex for Chilean salmon farming, a product of the impact of the ISA virus, experts predict.
In 2009, salmon shipments overseas tallied USD 2.174 billion, 12 per cent less than in 2008. Some 458,066 tonnes of salmon were exported last year, 23 per cent less than the 592,512 tonnes sent overseas during 2008.
Harvests are expected to reach 190,000 tonnes this year.
Related article:
- Congress passes modifications of aquaculture law
By Analia Murias
[email protected]
www.seafood.media
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