The new production system will require that each center invests about USD 2.5 million. (Photo: SalmonChile/FIS)
New regulations will increase production costs by 30 pc
Tuesday, January 11, 2011, 01:20 (GMT + 9)
The Chilean salmon industry will face a 30 per cent increase in production costs due to investments to be undertaken by companies to comply with more stringent regulations.
The new requirements are intended to prevent a new health crisis such as the ISA virus, which cost the salmon industry around USD 2,200 million.
However, businessmen recognize that these investments will enable them to also increase their production so that expenditures will return.
The largest costs will be aimed at two areas: one reffers to the transfer of smolting fish (mostly Atlantic salmon) from seawater to fresh water, which implies an increase of 40 per cent.
|Salmon Eggs. (Photo: Stock File)
The second major investment is related to the implementation of aspects of personal health information, such as the compulsory application of vaccines, reports Diario Financiero.
Also, restrictions on the importation of eggs made their value rise by 40 per cent.
The new production system will require that each center invests about USD 2.5 million, which means a significant increase compared to the costs involved in operating prior to the ISA virus.
In this regard, Carlos Odebret, CEO of SalmonChile, added that there will be costs related to the biosecurity of the industry. The silages, for example, which are the systems used to deal with mortalities on farms, "will require an investment of USD 50,000 for each one," he told Diario Financiero.
For its part, Yariv Abramovich, vice president of worldwide sales at Atlantium (supplier for water disinfection and pasteurization), explained that while all these measures will result in production being more expensive, they will also provide better results in terms of increased survival and productivity rates.
Another area of investment will be linked with the new regulations for the transport of fish, which seeks to prevent the transfer of pathogens between neighborhoods and farms.
In this regard, it is estimated that to implement all of the measure related to recirculation systems, water disinfection, ultraviolet equipment in
well boats will be disbursed between USD 80,000 and USD 100,000.
|Salmon Vaccines. (Photo: Pharmaq)
Businessmen recognize that all these costs should be absorbed in favor of a safer health equity, but they expect this to be offset by costs in productivity.
In this sense, Odebret explained that "where 100 fish before, today only 12 will die, where once fish were harvested at 4.5 kilos, now they will be harvested at 5 kilos" therefore, "any investment in health has a clear return on the production side."
On the other hand, officials of the Subsecretariat of Fisheries (Subspesca) and the National Marine Fisheries Service (Sernapesca) met with industry representatives in the Ministry of Finance, to address the issue of access to information on outbreaks of the ISA virus and other diseases.
The authorities also pledged to promote a new computer system that will improve public information, provided in accordance with the law.
- Salmon companies to expand their productive capacity
- Salmon concessions to be revoked for non-compliance with health standards
- Salmon industry bracing itself for lower supply of roe
By Silvina Corniola