Felipe Ureta expects a 10 pc drop y-o-y in the fish feed market. (Photo: BioMar/FIS)

Fish feed market drop expected

BioMar Chile SA general manager, Felipe Ureta, estimates that in 2013 the fish feed market will fall by 10 per cent. This forecast reflects somehow the impact of increasing salmon production, and the consequent fall in prices in the industries related to this activity, Diario Financiero reported.

According to the BioMar executive, the sector performance will depend on several factors:

• Pacific salmon and trout stocking levels in the next four months;
• Production results;
• Producers’ cash flow generation.

Ureta predicts that next year "will be really complex" because salmon price will continue low in the markets, "at least in the first half of the year, and raw materials will maintain a high level of prices."

For 2012, the entrepreneur calculates the food market will close with a 20 per cent growth compared to 2011.

"Earnings for this year have been influenced by an increase in costs and a rise in provisions," Diario Financiero stated.

Ureta highlighted that low salmon prices generated a significant deterioration in the cash flows, so the risk increased "significantly."

Furthermore, he said it has been a very complex year in relation to the supply of raw material, which rose quite a lot due to the lower availability.

"Raw material of marine origin was affected by low fishing quotas and harvest levels, whereas the vegetables were influenced by US drought and by weather problems in South America," he explained.

Regarding the close communication with the salmon industry, the entrepreneur stated that "compared to previous years there has been a significant deficit of working capital as a consequence of low salmon price levels."

BioMar executives ensure the company continuously focuses on reducing the environmental impact of the production of their food.

And they note that the factories -- in Chile, Norway and the UK -- have modern production facilities that meet the highest standards for environmentally sustainable production.

The company also improved its range of products over the years, with the aim of reducing the environmental impact of fish farming. By developing more effective and balanced diets they are looking for a better use of nutrients to support the growth of fish and, at the same time, decrease losses of the aquaculture environment.

By Analia Murias
[email protected]
www.seafood.media
 

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