Chilean salmon market in trouble: The closed US market expands frozen stocks of salmon in Chile

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“No major salmon production area has tougher market conditions than Chile,” says Mowi CEO Ivan Vindheim.

“Chile mainly produces fillets for the US market sold through traditional fish dishes, which have been shut down in addition to the Horeca segment( hospitality sector: restaurants and hotels) In other words, Chile has lost their most important customer, does not have processing capacity, and as a result has had to put the fish on frozen stock,” says Vindheim to TDN Finans.

Read also: Covid-19 hits Mowi as it post 45 per cent drop in EBIT

To move the stock from ocean to land is no long term solution.

“Of course, when you store the fish, no money comes in. So it is also very challenging financially for the companies in Chile,” he says.

Read also: Steven Rafferty: “We will probably see disruption for months in the salmon industry”

Mowi has processing capacity in Chile, and did not increase their frozen storage in the first quarter of the year. All fish produced have been sold.