Under fire

From highway robbery to lawsuits from indigenous communities, as Vince McDonagh reports, the Chilean salmon industry is facing challenges on a number of fronts.

Of all the major fish farming producing nations, Chile is the one facing some of the most difficult challenges.

It ranks second to Norway in global salmon production and is a long way ahead of the third largest producer, Scotland.

Last year Chile’s aquaculture sector generated total revenues of US $6.5bn (£5bn), according to the Central Bank of Chile.

Modern salmon farming got underway in the early 1980s, little more than a decade after it took off in Norway.

However, the first efforts in commercial aquaculture began in the 1920s, driven by governmental plans and initiatives for extensive and semi-intensive systems for use in the rearing of molluscs and salmonids.

Chile flag

A number of cultivation centres for scallop and mussel cultures, as well as for salmonid species, were created in the 50 years between 1920 and 1970.

With Chile’s prolific ocean coastline, its fish have been in high demand on international markets, which has led to the over exploitation of local fishery stocks of native species.

This was one of the drivers for the development of the aquaculture industry, which placed emphasis on developing aquaculture species with a high commercial value internationally.

Many of the companies today are nationally owned, but the industry has attracted huge investment from Norway and, more lately, Canada.

Like their Canadian counterparts, Chilean salmon companies face opposition from indigenous groups who don’t want fish farms in their neighbourhood and a sometimes hostile government, despite the huge contribution it makes to the national economy.

President Gabriel Boric

The current Chilean President Gabriel Boric has been a strong critic of the industry on a number of occasions, pushing reforms at the expense of businesses.

He has softened some of his rhetoric recently, turning his attention to the practices of the fishing industry instead.

The Chilean industry probably doesn’t get the attention it deserves on this side of the Atlantic, probably because it is a long way from Europe and it has its main markets in the United States, China and the rest of South America.

But the industry is fighting back, signalling that it has not only cleaned up its act, but is going for significant growth.

One of its biggest problems is that anti-salmon farming groups are gaining in influence with environmentalists claiming that the industry’s expansion in the south of the country, where most of the industry is based, is a major threat to the environmental and biodiversity.

These groups are pushing the government for greater regulation and the very least they want is a moratorium on growth.

The industry is worried. Some companies believe they may be forced out of some of their locations in the south.

Fish farm, Reloncaví Estuary

Falling production
While the industry’s long-term objective may be growth, the next couple of years are expected to see a modest reduction in both Atlantic and Coho salmon output.

The DNB Bank said in a recent presentation in the country that Atlantic salmon will decline by 5% to 727,000 tonnes this year, followed by a smaller decline next year before recovering to 730,000 tonnes in 2026.

And thanks to increased demand from the United States, prices are also likely to pick up within a year or two. At the moment, however, the price movement is down.

Price movements apart, it is what is happening politically that is worrying industry leaders more than anything else.

New aquaculture general law is being debated and the fear is that some of the proposals represent bad legislation which could damage or even destroy part of the industry.

As the law currently stands, local communities can apply for Coastal Marine Spaces for Native Peoples which they would be allowed to manage and control.

This has led to some communities, comprising just a handful of people, to apply to take over thousands of hectares of valuable land.

It means that further aquaculture development cannot take place in those areas until the application is decided.

Fishing hatchery, Chile

Industry leaders have not been afraid to speak out on this and other issues when they feel there are likely to be injustices. Only recently Andrés Parodi, the Chief Executive of Cooke Aquaculture Chile, voiced concerns about some of the legislation now being discussed.

This has already involved attempts by some indigenous groups to take control of large areas of coastal water where salmon farms are based.

He said on social media that “the regulations must be rigorous, but simple to administer and apply. Today, they prevent us from moving forward and not even those who created them understand them”.

The former Chilean president Eduardo Frei told the recent Salmon Summit 2024 this summer that the industry has been the driving force of growth in the south of the country over the last three decades.

“This has been built by the regions, by businessmen, workers, institutions, among others, but without a penny from the state. And are we going to stop it, are we going to complicate it?” he asked.

Chilean fish farmers clearly have a fight on their hands if they want to grow the industry but will need to proceed with caution.

The lesson from South America is that salmon companies are quickly losing friends, not just across the Atlantic, but in Europe and Australia too.
It is important they try to reduce any grounds for criticism as much as they possibly can.

But a lot of good things are happening within the Chilean industry and, in some respects, the country is ahead of Norway in controlling certain diseases and biological issues.

Shima salmon

Cooke takes Chile organic
Cooke Aquaculture, a relative newcomer to Chile, has begun harvesting the first organic farm-raised Atlantic salmon, launching it as a new brand: Shima.

This marine aquaculture production will initially be equivalent to 25% of Cooke’s total salmon production in the country and is certified organic pursuant to European Commission regulations and equivalents in Great Britain. The company has been producing organic salmon in Scotland for some time now.

Cooke Chile organic salmon, Shima, is now approved to use the EU Organic green and white leaf logo for export to EU and Great Britain markets.

Companies who hold this certification must meet the strict conditions related to all stages of production, processing, transportation and storage.

Andres Parodi, Regional General Manager for Latin America at Cooke, said: “This milestone in Chilean salmon farming is a result of keen innovation and strong dedication to providing a sustainable food source.”

This is a “true company-wide vision” and was made possible because of collaborative efforts and support along the way, he added.

Group CEO Glenn Cooke said: “Our team in Chile has driven this project forward with passion, commitment and respect for the environment. We are proud of this achievement and credit the hard work of our people for dedicating years to accomplish this.”

Atlantic salmon

Salmon trucks facing Wild West-style hold-ups
Armed robberies have become a big headache for salmon distributors in some parts of Chile with organised crime costing the industry around £70m.

The gangs are not dissimilar in style in the way they operate to the old Wild West bandits – except that fast trucks have replaced the horses and the stagecoach.

Some of Chile’s highways are very isolated, giving the gangs a further advantage.

The trucking companies have asked the police for greater protection and there have been some notable arrests over the past year.

They say that stealing salmon had become attractive to highway robbers because of the high price of the fish, with a large load worth thousands of dollars.

The Chilean courts have been imposing some stiff sentences on anyone caught and this is also helping to reduce the problem.