Salmones Camanchaca increases profits and reduces costs in the second quarter

Chile’s largest salmon farming company, Salmones Camanchaca, has unveiled a double increase in the second quarter of its profits and costs.

Like most of the world’s salmon producers, it has benefited from higher market prices, but the big plus has been its ability to cut costs in a period of rising inflation.

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

The company’s vice president, Ricardo García, said: “During this second quarter, the profitability of the company has returned to normal following the increase in the price of Atlantic salmon, due to strong demand and a shrinking global supply.

“Added to the above are improved costs and recovery in harvest volume, both affected in 2021 by algal blooms and oxygen issues.”

However, he warned: “Inflationary and feed cost pressures continue and will result in higher costs relative to our estimates of long-term trends.

The business was hit by an algal bloom attack in two areas during the first part of 2021, which resulted in lower production and harvest revenue. The incidents also had a negative effect on out-of-cage costs.

In the second quarter of this year, the company managed to reduce its cost per kilo by 17.6% to $4.05 (£3.48).

Salmones Camanchaca said it plans to harvest up to 9,000 tonnes of antibiotic-free salmon per year by 2024 to meet “more demanding markets”, including the United States.

Ricardo Garcia, CEO of Salmones Camanchaca