Salmones Camanchaca lifts profits, cuts costs in Q2

Chile’s largest salmon farming company, Salmones Camanchaca, has unveiled a double second quarter boost in higher earnings and lower costs.

Like most other global salmon producers, it has benefitted from higher market prices, but the big plus was its achievement in managing to cut costs in what has been a period of rising inflation.

Salmones Camanchaca reported a net profit of US $16.9m (£14.51) for the quarter, up from $8.4m ($7.22m) a year ago. Operating revenue almost doubled to $97.4m (£83.68). Harvest volumes also nearly doubled, to 12,446 tonnes.

Company vice chairman Ricardo García said: “During this second quarter, the profitability of the business returned to normal as a result of the Atlantic salmon price increase, due to a high demand and a decrease in world supply.

“Added to the foregoing was the improvement in costs and the recovery of harvest volume, both affected in 2021 by algae blooms and oxygen challenges.”

He warned, however: “Inflationary and feed cost pressures continue and will be reflected in higher costs compared to our long-term trends estimates.”

The company was hit by an algal bloom attack in two areas during the first part of 2021 which resulted in a drop in harvest output and revenues. The incidents also had an adverse effect on ex-cage costs.

During Q2 this year the company managed to bring its costs per kilo down by 17.6% to $4.05 (£3.48).

Salmones Camanchaca said it plans to harvest up to 9,000 tonnes of antibiotic-free salmon a year by 2024 to cater for “more discerning markets”, notably the United States.

Ricardo Garcia, CEO Salmones Camanchaca