SANTIAGO, Chile--(BUSINESS WIRE)--Changes made in the regulatory system are promoting sustainable growth in the Chilean salmon industry, according to a new report by Fitch Ratings. Recently-established farming 'neighborhoods' and 'Macrozones' will help create natural quarantines in the event of another breakout. In addition, new sanitary codes have been established to monitor fish populations and regulate the maintenance of transportation routes and vessels.
However, concerns remain. New population density limit regulations should result in improved sanitary conditions, but it remains to be seen how effectively these new policies will function in an industry that is expected to maintain high levels of production. In 2012, mortality rates rose again as production volumes increased, although they remain within acceptable levels.
Fitch also sees a growing level of consolidation and corporate professionalism among salmon farmers. As the regulator has restricted the issuance of new concessions, the tougher barriers of entry have discouraged smaller, less conscientious players from entering the industry. Additionally, in an effort to exert greater degrees of quality control over their 'neighborhoods' and optimize the use of their concessions, salmon farmers have started to swap and/or rent concession rights between companies.
Common denominators among the industry's strongest credits include: healthy liquidity, geographic diversity in the client base, and a broad mix of higher margin, value added products. Those companies who continue to develop these strengths should be well-positioned to tap private markets for their financing needs.
The full report 'Salmon Farming In Chile: New Challenges After the Crisis' is available at 'www.fitchratings.com'.
Additional information is available at 'www.fitchratings.com'.
Applicable Criteria and Related Research Salmon Farming in Chile: New Challenges After the Crisis
http://www.fitchratings.com/creditdesk/reports/report_frame.cfm?rpt_id=707715
ALL FITCH CREDIT RATINGS ARE SUBJECT TO CERTAIN LIMITATIONS AND DISCLAIMERS. PLEASE READ THESE LIMITATIONS AND DISCLAIMERS BY FOLLOWING THIS LINK: HTTP://FITCHRATINGS.COM/UNDERSTANDINGCREDITRATINGS. IN ADDITION, RATING DEFINITIONS AND THE TERMS OF USE OF SUCH RATINGS ARE AVAILABLE ON THE AGENCY'S PUBLIC WEBSITE 'WWW.FITCHRATINGS.COM'. PUBLISHED RATINGS, CRITERIA AND METHODOLOGIES ARE AVAILABLE FROM THIS SITE AT ALL TIMES. FITCH'S CODE OF CONDUCT, CONFIDENTIALITY, CONFLICTS OF INTEREST, AFFILIATE FIREWALL, COMPLIANCE AND OTHER RELEVANT POLICIES AND PROCEDURES ARE ALSO AVAILABLE FROM THE 'CODE OF CONDUCT' SECTION OF THIS SITE. FITCH MAY HAVE PROVIDED ANOTHER PERMISSIBLE SERVICE TO THE RATED ENTITY OR ITS RELATED THIRD PARTIES. DETAILS OF THIS SERVICE FOR RATINGS FOR WHICH THE LEAD ANALYST IS BASED IN AN EU-REGISTERED ENTITY CAN BE FOUND ON THE ENTITY SUMMARY PAGE FOR THIS ISSUER ON THE FITCH WEBSITE.