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Elena Conterno, president of the National Fisheries Association (SNP), said that 12 companies own 60 pct of the market share. (Photo: SNP)

The perception on fishmeal market concentration 'is wrong,' says Conterno

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Friday, August 11, 2017, 22:40 (GMT + 9)

The president of the National Fisheries Association (SNP), Elena Conterno, states that at present, 12 fishmeal companies own 60 per cent of the market share, and that "it is a myth to say that little is paid" for the capture of the anchovy which is converted into fishmeal.

This was pointed out by the former production minister, who represents the most important Peruvian fishing union, in an interview made by Ojo-Publico.com, within the framework of the publication of The concentration of the fishing circle in Peru.

On being asked about her opinion on Legislative Decree 1084, which established fishing quotas per vessel and favoured the settlement of contracts, Conterno clarified that "the act has no deadline, but the permanence agreements do", and that most of these were signed in 2010 and will begin to expire in the year 2020. Therefore, she considered that it is not an urgent issue to talk with the government about what will happen with the quotas and the prices that are paid for obtaining the fishing right.

The SNP president also noted that in 2014 they hired Ernst & Young "because there is a myth that little is paid." And said that this firm concluded that fishing pays 48 per cent of operating profit, while mining pays 42 per cent, so "it is not little."

Besides, she stressed that the fishing right represents only 25 per cent of all other items to be paid by fishing companies.

"We consider that we pay a reasonable and even a high one if you compare it with other activities and other countries," she said.

In this sense, she explained that it is necessary to "compare the total contributions with the price of tone of anchovy on the beach, not the fishmeal, because it does not have any sense."

As for the market concentration of the fishmeal industry, which, according to the article published in Ojo-Publico.com, only four companies dominate more than 70 per cent, Conterno said that this perception "is wrong."

"At the quota level we represent 60 per cent with 12 companies, and at fishmeal production level, more or less 75 per cent. This situation is not a product of the decree, it has been there for a time," she clarified.

Click here to read the full interview (in Spanish).

Related article:

Four fishmeal companies control 71 pct of the market

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