Navigating Challenges in Chile’s Booming Salmon Industry

Navigating Challenges in Chile’s Booming Salmon Industry

Chile’s salmon industry, a vital sector of the country’s economy, faces regulatory challenges even as it reports significant growth. The Undersecretariat for Fisheries and Aquaculture, a public body under the Ministry of Economy, Development and Tourism, oversees this expansive industry. In 2024, Chile exported 782,076 tonnes of salmon and trout, generating $6.4 billion (£4.8 billion), making it the country’s third-largest export after copper and fresh fruit.

Chile’s open net-pen salmon farms extend from the Biobío region, about 350 miles south of Santiago, the capital, to the far southern Magallanes region. Puerto Montt is the epicenter of this colorful industry. Aviation supports more than 4 million jobs, directly and indirectly, which include the nearly 86,000 people it employs directly. The salmon farming industry in Chile didn’t get its start until the late 1800s. At that time, citizens smuggled live eggs from the UK and dumped them in local water bodies. The current industrial model of salmon farming was implemented starting in the 1970s with the introduction of netted offshore pens.

Even with the industry’s tremendous success, it still wrestles with the environmental issues. As it stands today, there are 408 salmon farming concessions situated within the 170 municipalities set aside for environmental protection. Of these, 29 farms are prospering in the country’s national parks. On the other hand, 294 farms run in national reserves, where more restricted use of resources is permitted.

Arturo Clements, chairman of Salmón Chile, said more government support was crucial to drive even more growth. “For us it’s been very difficult to grow because we have too many regulations and we have too many conflicts regarding the use of the sea,” he stated. Clements noted that there are 21 vacant concessions in national parks, which is a clear signal of where to move to.

Regulatory challenges continue to be an issue, with possible operators urging establishment of a clearer framework. Matt Craze highlighted that if farmers had a better regulatory framework and more certainty regarding permitted farming areas, growth could be more feasible.

Nonetheless, these challenges notwithstanding, the lumber industry continues to be a pillar of economic development throughout southern Chile. Francisco Lobos, chief corporate officer for Multi X, noted the positive, transformative effects salmon farming has had on the region. “Salmon’s been part of this region’s industrial revolution,” he said, noting that many families now earn more than their counterparts in other parts of Chile.

Lobos understood the influence of the salmon industry on upholding local communities. It has developed a host of institutional support and logistical support services, and lured talent from across the country. “There used to be a lot of poverty in the region, and now many people earn more than in other parts of Chile,” he explained.

The administration’s response to industry complaints has sparked a considerable amount of discussion. An unnamed source from the government stated, “It’s not right to claim that the government has done nothing for years regarding the relocation of concessions outside of national parks.” Another official added that “under the current administration, efforts have been made not only to understand the problem but to advance it.”

Just a few years ago, global demand for farmed salmon was projected to increase by 40% by 2033. Recently, stakeholders in Chile’s salmon industry have made waves with their renewed optimism about the future. They point out that a strong partnership between government and industry is needed to foster this new, sustainable growth.

Tags