Mowi estimates 55,000-65,000 tonnes of salmon frozen inventory build-up in Chile

by
Aslak Berge

Full up warehouses in Chile will put a damper on price optimism in 2021.

On Sunday, SalmonBusiness reported that Chilean frozen salmon is being sold at prices down to USD3/kilo. With production costs around USD 4.2 per kilo, it means that the sale hit with bruising losses.

Market leader Mowi estimated that there is a large frozen inventory build-up in Chile.

“Total demand is still significantly impacted by Covid-19 and prices have therefore been negatively affected. The difference between supply and consumption in the third quarter of approx. 8,000 GWT is mainly related to frozen inventory build-up in Chile. Total frozen inventories for the Chilean industry are projected to be in the range of 55,000-65,000 GWT,” Mowi wrote in its Q3 report.

Chilean frozen salmon is currently sold primarily to markets in Asia and Russia. Chilean frozen salmon is expected to be increasingly also placed in the European market.

According to Mowi’s report, Mowi Chile has “a limited inventory of frozen products”.

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