The competitiveness of the Chilean salmon aquaculture industry

Aquaculture and the Environment - A Shared Destiny, 2011

intechopen.com

Chilean Salmon Farming on the Horizon of Sustainability: Review of the Development of a Highly Intensive Production, the ISA Crisis and Implemented Actions to Reconstruct … 217 technological bridge and providing services that helped the development of the salmon industry (Bluth et al., 2003). 2.1 Emergence of industrial aquaculture The emergence of foreign companies in the salmon-farming business stimulated interest among local investors and firms in the commercial viability of the industry. Some of the first enterprises were founded by biologists, veterinarians and marine biologist experts. They had acquired substantial experience and knowhow regarding fish farming management of foreign species and production of fish eggs (Norambuena & González, 2006). In the late 1980s, Chile officially entered the group of salmon and trout producing countries and a number of local salmon farming companies increased and production grew tremendously. In 1985, 36 salmon farms were operating in Chile and the production reached near 1,200 tonnes increasing up to 60,000 tonnes by 1991 (Bjørndal, 2002). Thus, the industry grew in technology focused to farming, feed and fish processing. In the early stages, the production of salmonid in fresh and seawater has been centred in Los Lagos region. However, in the last 20 years, the development of connectivity, fish handling and transport technologies lead to a wide spread in egg, fry, parr and smolt production up north to Valparaíso region (V), and also fresh and seawater production further south to Magallanes region (XII), see Figure 1.

Aquaculture International, 2019

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, overproduction), 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.

Aquaculture Economics & Management, 2008

Chile’s Salmon Industry, 2016

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2005

Geoforum, 1997

Chilean salmon aquaculture has exhibited dynamic growth since its introduction on a commercial scale in the early 1980s (IFOP, 1994). The indicators of growth show no immediate signs of abating, despite lower prices, and Chilean production now ranks second only to Norway in international production. The industry's efficiency and profitability depends primarily on two factors: optimal food utilisation to achieve a maximal rate of growth at a minimum cost and the control of mortality in the farmed fish population. The management of these factors has direct and indirect effects on the fresh water and marine environments of production sites. Many of these effects can be linked to the contamination of aquatic environments. The regulation of the industry to control these effects will determine its sustainability. This paper argues two points. The first point is that responsibility for the monitoring and regulation of the salmon aquaculture industry should lie with the state, especially in terms of environmental quality. The second point is the need to establish the degree to which intensive salmon aquaculture in Chile is sustainable at its current rate of expansion. In both cases, it is stressed that state regulation should be broader and more efficient than at present if the industry is to have a more sustainable future. 0 1997 Elsevier Science Ltd. All rights reserved

Fisheries science, 2002

Salmon ranching project supported by JICA, both governments of Japan and Chile was expanded for 17 years from 1972 to 1989 in the southern Patagonian Chile. The project consisted 4 stages. In the first 10 years, the project was mainly conducted for the purpose of transplanting several species of the Pacific salmon into the Chilean water. In the last 2 year of the project, however, the purpose was shifted to salmon aquaculture. This case study was intended to compare the project components in 4 stages and to evaluate the viewpoint of efficiency, effectiveness, impact, rationale, and sustainability. This analysis demonstrated that the project was successful.

European Business Review, 2014

This study focuses on how companies operating in international food commodity markets can improve their long-term competitiveness and profitability upon financial pressure. Management can choose between generic strategies of either cost leadership or enhanced value adding by differentiation and innovative marketing strategies. The aim of the paper is to highlight key findings from a case study perspective. The research is set within the farmed salmon sector in the world's second largest producing country, Chile. Unexpectedly our findings show that executives preferred competitive strategy of cost reduction rather than differentiation. Based on previous research we recommend managers of individual firms and trade associations to play down commoditization and to pursue differentiation strategies with particular attention to emergent environmental attributes.