The high price of salmon on the international market is a key factor of profitability for the farming sector. (Photo: Multiexport Foods/FIS)
Good financial outlooks for two salmon firms
Friday, May 14, 2010, 23:50 (GMT + 9)
The firms Invertec Pesquera Mar de Chiloe (Invermar) and Multifoods registered returns of 58.54 per cent and 31.41 per cent, respectively, in the Chilean stock-market during the present year.
For the experts, the high prices of salmon on the international markets and the improvement registered in the sector, following the spread of the infectious salmon anaemia (ISA) virus that surfaced in the country in 2007, are the main factors that allow salmon farming firms to boast good financial outlooks.
As a reference, the shares with higher yield in Chile’s blue-chip index, the IPSA, of the Santiago Stock Exchange are SM-Chile B with 45.08 per cent and Socovesa with 27.78 per cent.
Specifically, this Thursday, the two salmon farming firms had the highest spikes of the day, with 5.74 per cent and 4.33 per cent, respectively.
During this month, the shares of Invermar have had a yield of 19.95 per cent, and those of Multifoods, 17.18 per cent.
Both companies had to face the crisis caused by the ISA virus, with its economic, sanitary and labour consequences, and subsequently accede to new line of financing with the banks to be able to develop several projects they had suspended due to the downturn, Diario Financiero reports.
In addition, the pasage of
the new General Fisheries and Aquaculture Law spurred growth in the seafood-salmon farming industry.
In early May, the Salmon Industry Association of Chile AG (SalmonChile) estimates that salmon production will reach some 385,000 gross tonnes and 245,000 net tonnes in 2011, which would imply a recovery of around 10 per cent with respect to this year.
That productive increase would to a large extent be assured if the farming companies accede to planned financing, have specimens for breeding available and if salmon mortality drops.
- Recovery for salmon farming industry slated for 2011
- New fisheries and aquaculture law enacted
By Analia Murias