Leif Frode Onarheim, vice-Chairman of Marine Harvest, told the North Atlantic Seafood Forum that the most mature salmon market, the EU, developed strongly during 2007 but the Russian market is increasing rapidly.

However, Japan reduced its volume for the third consecutive year, a move Linked to high prices a weak Yen and high wild catch volumes.

Brazil was growing rapidly which was an “interesting” market due to its proximity to Chile and finally South East Asia had a good development in 2007, but a weak fourth quarter.

Mr Onarheim said that key drivers for further consolidation in the salmon farming industry included:

• Stabilising price through supply management

• Increased R&D

• Decrease operational risk through controlled production and growth

• Lower fixed cost allocation through scaled efficient infrastructure

• Diversification to balance operational risk

For the downstream seafood industry, the future should mean:

• Improved and standardised products

• Fewer, larger and more cost efficient processing sites

• Higher volume flexibility to absorb harvest fluctuations and growth

• Improved bargaining power vs. retailer chains

• Vertical integration

• Increased market orientation

• Ability to adapt to requirements from large customers and end consumers

• Ability to tailor quality niches

• Reduced logistical costs

• Reduced earnings volatility

On historic limitations to growth of the Atlantic salmon sector, Mr Onarheim said all regions except Chile had surpassed periods of stagnation/decline and sustainable industry growth and cost levels had been restored in other regions thanks to factors including :

• Improved husbandry measures

• Effective vaccines

• Efficient regulations from authorities

• Area densities limited by strict licensing systems

• Distribution of production over larger areas

• Close industry cooperation and area management agreements

But Chile, he said, is currently experiencing setbacks as the “youngest” region.

www.fishupdate.com is published by Special Publications. Special Publications also publish FISHupdate magazine, Fish Farmer, the Fish Industry Yearbook, the Scottish Seafood Processors Federation Diary, the Fish Farmer Handbook and a range of wallplanners.

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