Chile: Red Tide and Labor Unrest Reduce Chilean Salmon Production
A harmful algae bloom, which has been attributed to the El Niño impact, caused losses of 100,000 MT of Chile’s salmon production -- approximately 12 percent of Chile’s annual production during the first half of 2016. In May 2016 a “red tide” hit the coast of Chile in the 10th region of Los Lagos, causing massive deaths of fishes and mollusks. Consequently, fishermen staged protests and road-blocks demanding the government’s assistance in the important salmon producing region of Los Lagos which has compounded the industry’s woes. Industry sources estimated losses of US$ 9 million/day in sales due to the road-blocks. The drop in production has increased the average price for Chilean salmon in the United States by 54% going from 3.5 USD/lb in January MY2016 to 4.97 USD/lb in June MY2016 (Fresh D trim fillets FOB Miami).
Chile: Red Tide and Labor Unrest Reduce Chilean Salmon Production
