Price rise should lessen algal impact
According to the general manager of Camanchaca, Ricardo García, the increase in prices achieved by the Chilean salmon industry will help to offset losses from Harmful Algal Blooms (HABs), although the company still stands to lose at least US $5 million as a result of the occurrence.
Like other companies in the sector, Camanchaca was not immune to HABs during Q1.
Mr Garcia reported in El Mercurio that the blooms reduced the company's harvest projections from 40,000 tonnes down to 26,000. “However, this will occur in a better price environment,” the executive said, who estimates a direct negative effect of between US$ 5 million and US$ 7 million on its financial statements as consequence of HABs this year.
“Today, prices are at their historical level, although they have increased compared to last year,” he said, adding that this large price hike will help to mitigate the direct impacts of algal blooms.
Although his company is making production and employment adjustments this year, Garcia said that their 2017 harvest plans have not been affected so far.
