Felipe Briones foresees a new crisis in Chile
"A complex issue is that there are too many concessions. This situation is not viable and if that fact is not recognized, we are heading to the collapse and we will see an unemployment crisis that the Government cannot afford. Thus, the Government should regulate both, the neighborhoods and the farming densities," he said.
Besides, the businessman considers that most of the Chilean salmon companies are overloaded with debts and thinks that the consolidation of the industry will start in the coming months.
Felipe Briones revealed that the local salmon industry is experiencing very difficult moments in financial terms due to the currently low salmon prices and higher production costs, reports the financial journal Diario Financiero.
Furthermore, he added that these larger costs are related to a more expensive fish feed, moderately higher mortality rates and new delousing treatments. "Despite some few exceptions, most of the Chilean companies have very high leverage ratios, in other words, lots of them are over-indebted," he said.
Regarding the financing of new projects, he considers that the local industry will not be able to raise funds in the banking system or the stock exchange due to financial reasons. Therefore, he thinks that the so expected consolidation of the industry will start in the coming months.
