Troubled Chilean company positive despite large revenue drop

The big Chilean salmon farmer Nova Austral, which fought back from the brink of bankruptcy earlier this year, is continuing to remain positive.

Publishing its 2024 second quarter report, the company said that although prices experienced a downward trend in the April to June period, they were still expected to remain higher than the general market due to contracts that had been agreed earlier.

Revenues were down by 53% to US $13.8 million (£10.3m) due to a smaller harvest but the gross loss however fell by US $800,000 to US $1.7 million (£1.3m).

Nova Austral’s Trim D prices at the end of June 2024 were 16% above the Urner Barry prices. Urna Barry is a renowned business publisher which specialises in accurate and unbiased reporting of food related market information.

During the period 444,000 smolts were delivered, with 114,000 of them stocked in Nova Austral sites and 330,000 sold to third parties.

The company said there were no extraordinary mortality incidents experienced during the last 12 months.

The company had six farm sites operating and planning to stock three more farm sites before the end of the year.

On sales, the company said it was continuing to focus on value added products, with the United States and Europe expected to remain its main objective markets.  It said the strategic focus will be on fresh products and frozen portions.

Turning to global output, the company said the UK (meaning Scotland) expected to grow from 152,000 tons in 2023 to 168,000 tons this year and 171,000 tons in 2025.

The Chile harvest was an estimated 766,000 tons in 2023 but will be down to 735,000 tons in 2025.

Norway was 1,479,000 tons in 2023 and will be 1,595,000 tons in 2025.

Canada should be up by 8,000 tons to 125,000 tons in 2025.

Faroes was 89,000 tons in 2023 but will be 106,000 tons in 2025.