International price of salmon raises with crisis in Chile

International salmon prices have skyrocketed in recent months due to the damage caused in ranches of Chile by the proliferation of toxic marine algae. The South American country is the second largest producer of salmon.
According to analysts, Chilean salmon prices have increased 25 percent, to about $ 5 a pound-weight (as equivalent to 454 grams), since December, when the health crisis began. The explanation for the problem can be the elevation of the Pacific temperatures caused by the El Niño phenomenon and the lack of rainfall. This combination can have triggered uncontrolled proliferation of algae.
According to the national fisheries and aquaculture Service of Chile, 38 salmon ranches from the main producing region of the country were affected, leading to the death of 23.8 million fish. "The proliferation still affects the fish," said Javier Peró, SalmonEx of Chile, which concentrates on this market.
The production of salmon from Chile, which in large part is exported to the United States, should fall approximately to 100 1000 tonnes in 2016. Last year, there were 590 1000 tons. Like Norway, who leads the global production, you must also register a lower offer, this difference caused by the crisis in Chile should not be compensated.
"We believe that there will be a shock in supply worldwide," says Kolbjorn Giskeodegard, Norwegian bank Nordea, which provides that salmon prices will remain high in the coming months.
The financial loss to the Chilean salmoneira industry, which already has problems with its high debt and low cash availability, are estimated between $ 500 million and $ 1 billion. Many companies have insurance, but Audun Lem, a seafood area of FAO, arm of the UN food and agriculture, believes the situation will lead to a wave of mergers and restructurings.
At the same time, the Chilean crisis comes collaborating to boost shares of companies producing salmon from Norway. The devaluation of the Norwegian Crown left the fishing production in the country more competitive in the international market, and local exporters come gaining market share in the United States.
The value of Marine Harvest, largest producer of salmon of European country rose nearly 9% since the beginning of the year. The roles of its competitor Leroy, smaller companies, build up 15.2% on year gains and 54% in 12 months.
Analysts also highlight that the Chilean fishing crisis confirms the fragility of health aquaculture, always susceptible to climate variability and diseases. The salmon farmers come fighting outbreaks of parasites, while the creators of prawns and crayfish in Asia suffer from a disease known as early mortality syndrome.