Camanchaca suffers from price drop
The significant drop in salmon prices during the year has caused returns in Salmones Camanchaca to fall by 7.6 per cent up to September this year, down to US$ 192 million, while the results showed a loss of $13 million, compared to a profit of $11 million in the first nine months of 2014.
The company reported favourable volumes of both production and sales, with Atlantic salmon harvests increasing 10.4% compared to the previous year, reaching 27,713 tonnes WFE up to September 2015. Meanwhile, sales increased 14.5%, reaching 29,115 tonnes WFE. As for trout, the last harvests occurred during January 2014.
At unitary level, the company experienced a reduction in its EBIT per kg of Atlantic salmon - from US$ 0.59 in the first nine months of 2014, to $0.08 up to September this year.
Prices
According to the company, salmon prices have fallen 19.9% (or $1.1 per kilo WFE) compared to first nine months of 2014, with an adverse effect of around $33 million. The company states that this price drop is a consequence of the decline in demand due to the depreciation of almost all currencies in those countries where Chilean salmon is exported, against the US dollar. In addition, there has been pressure on the US market, which has seen an increased supply of Norwegian and Canadian salmon.
“We do not think the situation of low prices will change in the rest of this year, as this drop in prices is due to conditions of weak demand measured in dollars, and whose recovery is not expected to be soon,” said the company.
Sanitary conditions
In its quarterly release, Camanchaca reports normal sanitary conditions in its salmon farming sites, due to the relatively good condition of their farms, good sanitary coordination between companies operating in the same areas and the use of better techniques and new treatments. All these variables have contributed to reduce ex-cage costs of Atlantic salmon from US$ 3.60/kg WFE in the first nine months of 2014, to US$ 2.97/kg up to September 2015.
