Abstract
Since the 1980s, aquaculture has developed rapidly around the world, outpacing all other sources of animal protein production. Chile is the largest producer in South America, with an export-driven aquaculture industry. Aquaculture development in Chile has largely focussed on three high-value species (Atlantic salmon, Rainbow trout and Chilean blue mussel). These three species accounted for over 90% of the volume and value of Chilean exports by 2014. The paper considers the role of trade and markets on Atlantic salmon production in Chile and the role of government regulators and industry to facilitate a further sustainable increase in farmed salmon output. Specifically, we address the opportunities and constraints regarding the impact of trade and markets for further industry expansion. We find that production constraints (e.g. regulation, over-production), marketing constraints (e.g. consumer perception) and environmental constraints (e.g. disease) have led to stagnating and sometimes declining production, preventing Chile from surpassing Norway and becoming the world’s largest Atlantic salmon producer. The paper concludes that the signs for further growth are positive in Chile, although to date, it is noted that industry expansion has outpaced developments in infrastructure, regulation and research and development. Most significantly, the industry has been blighted with environmental problems, which has weakened market share in recent years. However, better regulatory practice in Chile in recent years has been seen as positive in international markets. We note that further development in the regulatory framework and continued aspirations to meet certification standards (e.g. Aquaculture Stewardship Council, Global Aquaculture Alliance Certification) could lead to increased market share for Chilean farmed salmon in the future.
Highlights
The growth in global fish supply1 has been more than double the population growth since the end of World War II, increasing per capita supplies from 9.9 kg in the 1960s to 20.3 kg in 2016 (FAO 2018)
The rate of growth has declined in recent years, global demand and higher prices have increased the value of global fish exports to USD 152 billion in 2017 (FAO 2018)
Further disease problems in 2010–2011 caused a global crash in the market price for farmed Atlantic salmon, followed by recent growth in Chile outpacing that of the Norwegian industry
Summary
The growth in global fish supply has been more than double the population growth since the end of World War II, increasing per capita supplies from 9.9 kg in the 1960s to 20.3 kg in 2016 (FAO 2018). Further disease problems in 2010–2011 caused a global crash in the market price for farmed Atlantic salmon, followed by recent growth in Chile outpacing that of the Norwegian industry ( this is expected to be reversed in the short term as a result of stricter regulatory controls on production growth in Chile—see section on trade regulations). The density directive is designed to slow down output growth and to try to de-incentivise over-production decisions (currently related to higher than normal market prices) that create “boom-bust” economic cycles in the industry This has been seen as positive by some producers, especially in relation to the recently reported case of ISA—one of the drivers behind the proposal (as higher stocking densities are directly link to the development and spread of ISA). The GSI has been credited as a significant step in this regard
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