MercoPress. South Atlantic News Agency

Chilean fisheries exports and domestic sales down 46% in first quarter

Several fish processing plants were flattened by the tsunami

Fishing production in Chile’s central south BioBio region (Region VIII) is still reeling in the aftermath of the Feb. 27 earthquake and tsunami.

Revenue from Chilean export and domestic sales fell 46.4% during the first three months of the year, from 412 million US dollars, measured in the same period in 2009, to 221 million USD as a result of lower production, according to the Association of Industrial Fishing, Asipes.

During the first quarter, the BioBio region experienced a considerable decrease in production lines for preserved, frozen fish and fish oil. These sectors represent just over 60% of the catch in Chile.

Asipes general manager Luis Felipe Moncada said the exact recovery period for businesses is unknown, but the companies whose facilities on land were destroyed could take up to two years to be reconstructed.

Moncada said there are about 14 processing plants still functioning: four for fishmeal, two for canned fish products and two for frozen fish products.

Of the 35 plants in the area, some could be operational within a few months, but others suffered severe damages and could take a year or more to be up and running again, he said.

Asipes predicts reconstruction of infrastructure will cost around 305.7 million USD, a figure that could rise. Moncada said this figure does not take into account the fish meal, canned and frozen fish that was lost as a result of the tsunami, earthquake and looting, especially in Coronel.

Moncada said the industry would not ask for help from the authorities since they are capable of functioning independently as long as there is legal framework supporting them.

Another major concern is unemployment within the sector. The industry, which generates 13,000 jobs on average, is aiming to keep employees on staff during the difficult period.

Some companies have used their production staff for cleaning, clearing and rebuilding during the reconstruction phase, Moncada said. In a period of reduced revenue, Moncada says the financial situation will be mitigated by an increase in the value of products, the result of supply shortages.

But even though the industry intends to keep workers employed, there will still be a decline in wages, as there will be no production bonuses or overtime, Moncada said. And there are some cases where layoffs are inevitable, he added.
”Such is the case of Pesquera Landes, whose units were swept away by the wave of the tsunami,” he said. “Of a total of 600 workers, they could only employ 280 for clearance work”.

By Laura Burgoine – Santiago Times