Disease outbreak devastates Chile's salmon industry

By Anjli Raval Published: February 18 2010 02:00 | Last updated: February 18 2010 02:00 Salmon prices are jumping after a sharp decline in global supply following the collapse of the Chilean industry following an outbreak of a fish disease. Since the start of the year, wholesale prices for Norwegian-produced Atlantic salmon have risen 20.6 per cent, says Statistics Norway. That has extended a year-long rally in prices, which have risen 32.5 per cent to NKr37 (£4) a kilo. Industry analysts expect the surge to feed through to what people pay for salmon steaks and fillets. Chile’s output of Atlantic salmon has been hammered by the virus that causes infectious salmon anaemia, which emerged in 2007. The disease, which does not affect humans if such fish is consumed, kills off salmon by attacking their red blood cells. “Chile, which was the second-biggest producer of salmon, has seen its output plunge more than 75 per cent in two years,” said Aslak Berge at First Securities in Norway. “During peak production in 2008, Chile sold 403,000 tonnes, but we forecast a sales estimate of 90,000 tonnes this year.” … “We have never seen a year-on-year decline in global supply before and this is happening in a market where the willingness to pay is increasing,” said Sjur Malm, an analyst at SEB Enskilda in Norway. “We estimate a global supply decline of 6 per cent year on year.” … Environmental groups accuse Chile’s salmon industry of over-crowding its cages for salmon and using too many chemicals. Industry analysts said salmon would have to be farmed at a much lower density in Chile in the future.

Salmon prices leap as fish disease outbreak devastates Chile’s supply