CHILE - In response to weak prices in Marine Harvest Chile's main markets for Atlantic salmon and challenging biology, Marine Harvest Chile has decided to reduce its smolt stocking in 2015 from approx. 17 million to around 11 million smolt.
Accordingly, the company will also reduce the number of employees.
In relation to the restructuring, Marine Harvest Group (MHG) will make a provision of approx. $11 million in the second quarter. Corresponding cash effect is approx. $4 million.
These measures are taken to contain losses for Marine Harvest Chile until the main markets for the Chilean salmon have recovered.
Meanwhile MHG's market organization will put a large amount of effort into developing current and new markets for the Chilean salmon through, among other things, introducing more value added concepts and new products.
Marine Harvest Chile's operating philosophy of only producing salmon from the best licenses stands and has positioned the company as one of the cost leaders in the region.
Marine Harvest Chile is notwithstanding continuously evaluating further measures to improve its cost base, and will in this regards capitalize on MHG's global farming strategy through sharing of best practices and good farming husbandry.
MHG has previously advocated that consolidation in Chile is a prerequisite for establishing a profitable and sustainable industry in the region. MHG believes that the current market disruptions and biological situation make this more important than ever.
TheFishSite News Desk