Please your inbox to reset your password safely and easily.
Please your inbox to reset your password safely and easily.
The strike has already stopped the free fall in salmon prices, which reached a five-year minimum of $3. 50/lb for delivery to Miami. The strike, which ended on September 2, lasted several days and separated Chilean salmon producers from their major markets in Brazil and the United States: disruption, albeit mild, may be opposed to the trend in a heartbreaking year for Chile’s salmon industry.
“In my opinion, this will play a role in backing the values,” Rabobank senior analyst Gorjan Nikolik told Undercurrent. “I think this may be the beginning of a worthwhile rally. “
Chile will be a driving force for a narrow source in global salmon markets, Nikolik said. The existing value environment was also due to the fact that Chilean source increased this year, expanding to 9. 7% in the last quarter of this year, compared to it was last year, he said.
The increase in source in Chile coincided with the demand for decline in Brazil and the United States, the two countries of the global high affected by the pandemic. More than 10 million other people have become inflamed with COVID-19 in both countries, according to statistics compiled through Johns Hopkins Medical University. India is about to outperform Brazil as a country with the total number of people at the time it has ignited.
Brazil and the United States account for up to 70% of Chilean salmon shipments, Gutierrez said. In the United States, retail channels now account for 75% of all Chilean salmon purchases, up to 55% in a general market, he said. At the same time, the U. S. restaurant channel has grown from 45% of Chilean exports to 25%.
Prices for D-cutting networks sold in the United States began to rebound at $0. 20/lb in week 36, as the truckers’ strike persisted and prevented all shipments from reaching boarding planes at Santiago International Airport, resulting in a massive price drop, from an average of $5. 10/lb in the first quarter of 2020 to about $4/lb in the current quarter, Gutierrez said.
Companies like Multiexport Foods, with a strong diversity of value-added processing, have received more supplies to adapt to changing market circumstances, he said. a loss for several months.
The scenario is even more confusing for the Brazilian market, which Chile dominates, Gutiérrez said. The market is 80% of the restaurant compared to 20% of food distribution and the effect in Brazil would have been worse if it weren’t for the agility of Brazilian restaurants to open delivery channels, he said.
The positive aspect for Chile and other salmon companies exporting the pandemic to the United States is that consumers ate the same amount of salmon compared to previous years, Nikolik said, meaning that U. S. consumers are increasingly learning to cook salmon at home, a trend that bodes well for long-term consumption.
Several Chilean corporations recorded losses this quarter due to market collapse, while many of their Norwegian peers remained in the dark in the face of strong retail demand in Europe. Chilean exporters are financially strong after 4 years of peak costs and can cope with the existing crisis, Nikolik said.
Chile and others also benefit from strong demand in some countries such as Japan, where intake is expanding by 20% year-on-year. Regin Jacobsen, CEO of Gutierrez and Bakkafrost, expected an uptick in historically strong markets such as China and Russia, where the call fell due to the pandemic.
The recovery in salmon costs is evident at the sites of Oslo’s futures market, Nikolik said. Future costs for the first part of this year were traded at significant value relative to spot costs, indicating uncertainty at the market location. market sentiment for recovery, he said.
To view or comment, simply
Please your inbox to reset your password safely and easily.
The costs of Chilean salmon can start from the lowest values, as a trucker strike lasted several days and interrupted shipments [. . . ]
You’re missing something. Join the global network that relies on Undercurrent News for quality reports.
To keep reading to us, just
Please your inbox to reset your password safely and easily.