The impact of trade and markets on Chilean Atlantic salmon farming

Abstract

Since the 1980s, aquaculture has developed rapidly around the world, outpacing all other sources of animal protein production. Chile is the largest producer in South America, with an export-driven aquaculture industry. Aquaculture development in Chile has largely focussed on three high-value species (Atlantic salmon, Rainbow trout and Chilean blue mussel). These three species accounted for over 90% of the volume and value of Chilean exports by 2014. The paper considers the role of trade and markets on Atlantic salmon production in Chile and the role of government regulators and industry to facilitate a further sustainable increase in farmed salmon output. Specifically, we address the opportunities and constraints regarding the impact of trade and markets for further industry expansion. We find that production constraints (e.g. regulation, over-production), marketing constraints (e.g. consumer perception) and environmental constraints (e.g. disease) have led to stagnating and sometimes declining production, preventing Chile from surpassing Norway and becoming the world's largest Atlantic salmon producer. The paper concludes that the signs for further growth are positive in Chile, although to date, it is noted that industry expansion has outpaced developments in infrastructure, regulation and research and development. Most significantly, the industry has been blighted with environmental problems, which has weakened market share in recent years. However, better regulatory practice in Chile in recent years has been seen as positive in international markets. We note that further development in the regulatory framework and continued aspirations to meet certification standards (e.g. Aquaculture Stewardship Council, Global Aquaculture Alliance Certification) could lead to increased market share for Chilean farmed salmon in the future.

Enhancing land-based culture of coho salmon through genomic technologies: An economic analysis

“…Chile is also the largest producer of farmed coho salmon, yet even with an increase in production of 34% in 2018, production quantities are very low in comparison to Atlantic salmon (FAO, 2019) and have been relatively stable since the early 2000s (FAO, 2006). It is possible that the demand has not increased considerably since the market for farmed Chilean coho salmon is less varied, with 90% consumed in Japan (Poblete et al, 2019). Given that there are more markets for farmed Atlantic salmon, Chile may not have had the opportunity to expand their production of coho salmon and has produced much more Atlantic salmon then coho salmon since 1992 (Knapp et al, 2007).…”

“…Future research on consumer preferences and the proper marketing of farmed coho salmon could be used to supplement the economic analysis presented here. Demand for coho salmon from recirculating systems in BC may spread to markets that Chilean coho salmon do not reach, as it would not be associated with the outbreak of Infectious salmon anemia (ISA) that caused production to drop in 2008 (FAO, 2006;Poblete et al, 2019). This demand may be increased due to recent regulatory changes set by the federal government in Canada, indicating a shift away from producing farmed salmon in open net sea-pens (Trudeau, 2019).…”

Chilean Salmon Sushi: Genetics Reveals Product Mislabeling and a Lack of Reliable Information at the Point of Sale

“…Atlantic salmon was the most used species in Chilean sushi, reflecting the dominance of the species both globally and in Chile [8]. The bulk of Chilean production of Atlantic salmon is sold for export [9], with the remainder consumed in the domestic market. In our study, at least 60% of sushi retailers included this species, possibly reflecting a mix of consumer preference for salmon over trout and ease of supply.…”

“…Chile is the second largest aquaculture producer of salmonid fishes worldwide, exceeding 880,000 tons production in 2018 [8,9]. Currently, Atlantic salmon (Salmo salar) dominates production in Chile (2018 production: 661,138 tons live weight) followed by coho salmon (Oncorhynchus kisutch: 148,521 tons), and rainbow trout (Oncorhynchus mykiss: 78,446 tons) [8].…”

“…Currently, Atlantic salmon (Salmo salar) dominates production in Chile (2018 production: 661,138 tons live weight) followed by coho salmon (Oncorhynchus kisutch: 148,521 tons), and rainbow trout (Oncorhynchus mykiss: 78,446 tons) [8]. Although the bulk of Chile's salmonid production is exported, these three cultured species can also be sold nationally following statutory requirements [9]. In addition to aquaculture fish, Chile also supports widespread and abundant populations of naturalized salmonid fishes, where the entire life cycle is completed as free-living individuals [10] including rainbow trout, Chinook salmon (Oncorhynchus tshawytscha), and brown trout (Salmo trutta) [11][12][13][14].…”