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The Chilean Salmon Industry Takes Off: From the Commercialization to the Early Development Phase

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Chile’s Salmon Industry

Abstract

Norman and Stiglitz (2012, 7) emphasize that the long-term success of economic development rests on the ability of societies to learn “new technologies, new ways of doing business, new ways of managing the economy, new ways of dealing with other countries.” Related to this notion of a “learning society” is the view of Cimoli et al. (2009, 2) that great industrial transformation “entails a major process of accumulation of knowledge and capabilities, at the level of both individuals and organizations.

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Notes

  1. 1.

    Emphasis in original.

  2. 2.

    Fundación Chile was created as a result of compensation consultations that the Chilean government undertook with an American multinational corporation, the International Telephone and Telegraph Corporation (ITT) . During the Allende Administration, Chilean Telephone Company, owned mostly by ITT , was nationalized. The post-coup administration of General Pinochet compensated ITT for its losses caused by the nationalization. As part of the compensation, both parties agreed to establish Fundación Chile, half-owned by the Chilean government and ITT, with the aim of developing technologies needed for industrial development in Chile.

  3. 3.

    This company had not yet sold salmon—Union Carbide had stepped out of the salmon project and Campbell’s Soup was not interested in the salmon business (from the interview with Ricardo Rodríguez in 2008).

  4. 4.

    To be precise, Domsea Pesquera Chile Ltda.

  5. 5.

    The first sea cage in Puerto Chacabuco was the one that Ricardo Rodríguez built in Dalcahue , Chiloé Island. This cage was moved to Puerto Chacabuco (Mendez and Munita 1989, 95).

  6. 6.

    The contract between SERPLAC and Fundación Chile was signed in 1982 (Mendez and Munita 1989, 95).

  7. 7.

    Here, “staff” and “equipment” of “SERNAP , 11th Region” [the Aisén regional office of SERNAP] refers to staff and equipment of the Japan-Chile Salmon Project by SERNAP and JICA . The director of the regional office at that time was Mr. Pablo Aguilera (Mendez and Munita 1989, 110 and 206).

  8. 8.

    From an interview with Ricardo Rodríguez in 2008.

  9. 9.

    The salmon industrial association was called “Association of Salmon and Trout Producers” at the beginning, and later, the name was changed to “SalmonChile” as we see today. The contribution that Fundación Chile made for organizing the industrial association was emphasized in Mendez and Munita (1989, 110).

  10. 10.

    From the interview with Ricardo Rodríguez in 2008.

  11. 11.

    From the interview with Ricardo Rodríguez in 2008.

  12. 12.

    Fundación Chile making a 25 % investment, Salmone Huillinco Ltda was established as the first private enterprises to farm Atlantic salmon in 1987. In the same year, Finamar Ltda, a smoked salmon processing company, was built in Santiago, and Salmtec Ltda was established in 1988 aiming for establishing farm technology research. Moreover, Fischer brothers built Salmones Pacifico Sur Ltda, merging it with Salmones Huillinco Ltda. Pacific Star Ltda and Friosur Ltda were also established.

  13. 13.

    According to TechnoPress and SalmonChile (2003a, b, 17), many publications about the aquaculture industry in Chile pointed to the contribution of Fundación Chile as follows. “Fundación Chile greatly contributed to our economies through adding new economic activities by introducing new technologies from abroad and applying the results obtained from R&D in Chile. The development of salmon farming industry would be the typical case of their contribution…” This document, beginning with a message from President Lagos, is one of the most important documents about the Chilean aquaculture industry, especially salmon farming. In addition, the document is one of the few documents translated into English, and it seems to have been widely read around the world. The English version (2003a) is slightly different from the original document in Spanish (2003b); therefore, upon writing this book, the original document is referenced. TechnoPress is an affiliated company of Fundación Chile.

  14. 14.

    Ricardo Rodríguez who had played an important role at Salmones Antártica retired after the acquisition. He started a new company, Seafine Salmon, producing 2500 tons at maximum, with production continuing until the year 2000.

  15. 15.

    The story of Nippon Suisan Kaisha looking for a new site to apply experiences in Onagawa, Miyagi is in Nissui Frontier 18 (www.nissui.co.jp/corporate/frontier).

  16. 16.

    This study was conducted by the Canadian consulting firm Hatfield Consultants , Inc., which selected the Rio Negro River in Hornopirén as the most appropriate site from ten candidate locations. In addition, the consulting firm offered advice for salmon farming projects planned by private companies. It also built and managed some hatcheries on behalf of such companies. The Canadian firm set up a joint consulting firm specializing in salmon farming with Chilean entrepreneur José Puga (TechnoPress and SalmonChile 2003a, b).

  17. 17.

    To discuss challenges related to market and process technology of early growth phase , this chapter mainly focuses on those related to Japanese market, because more than half of Chilean salmon was exported to Japan during this phase. With regard to challenges in other main markets as well as the anti-dumping issue in the United States, see TechnoPress and SalmonChile (2003a, b).

  18. 18.

    The concern with quality by Japanese importers and consumers is well known. For example a study, based on interviews, reported that one Japanese supermarket chain bought a Chilean firm’s entire production of 3,400 tonnes of coho salmon in 1999 and that the final product was inspected during the site visits by a representative of this supermarket chain. The study concluded that, “This is a perfect example of retail chains acting as lead governors in determining the nature of the process upstream in the chain” (Phyne and Mansilla 2003, 115).

  19. 19.

    This trend waned due in large part to the gradual disappearance of sockeye salmon from Alaska on the Japanese market. Sockeye salmon have not been artificially cultivated anywhere in the world.

  20. 20.

    From an interview with Mr. Valenzuela.

  21. 21.

    According to Sakurai (1995). Teiji Sakurai, was then chief of the JETRO office in Chile.

  22. 22.

    The Chilean Association of Salmon and Trout Producers noted that Mr. René Acklin was the one who contributed to the development of the market for Chile besides Salmones Antártica , Mares Australes , and Nichiro (TechnoPress and SalmonChile 2003a, b, 31).

  23. 23.

    Sakurai (1995, 27). According to Chilean data, the amount of Chile's salmon exports to Japan in 1993 was 34,000 tons.

  24. 24.

    The actual budget breakdown differs from case to case such as selling at FOB or CIF as well as degrees of processing (TechnoPress and SalmonChile 2003a, b, 129).

  25. 25.

    Salmon processing hubs are in Poland, Denmark, and some others. France has domestic processing industry.

  26. 26.

    As mentioned before, Salmones Antártica built a processing plant in Dalcahue , Chiloé Island and started the operation in 1986 before its acquisition by Nippon Suisan Kaisha.

  27. 27.

    The situation has remained more or less the same. Norway exports salmon as semi-dressed fish (gutted only) to Europe, which accounts for some 80 % of its export market. When the infectious salmon anemia (ISA ) virus broke out in Chile in 2009, Norway tried to fill the gap left by the decrease in U.S. salmon imports from Chile. Because the U.S. market does not accept semi-dressed fish, Norway tried to export salmon fillet s. Due to its limited processing capacity , however, Norway’s salmon exports to the U.S. fell way short of the target figure of 50,000 tons to 17,000 tons. This nevertheless represented a fourfold increase over a year earlier. While Chile exports Atlantic salmon largely in the form of unskinned fillets to the U.S., Norway does not usually perform this kind of processing.

  28. 28.

    Process yield is 80 %. HG stands for “headed and gutted.”

  29. 29.

    The project planners were divided over the role of this new project. Some argued that the stocking of chum salmon should be continued in areas south of the Aisén Region. In making a difficult decision, the project planners revisited the principle of what was really needed to establish the salmon industry. The new project consequently supported domestic production of eggs and conducted cherry salmon stocking in inland waters. JICA changed its counterpart organization from SERNAP to IFOP , an organization under the umbrella of CORFO, to allow for the sale of domestically produced eggs.

  30. 30.

    The Editorial Committee of the Centenary Celebration of the establishment of diplomatic relations between Japan and Chile (1997).

  31. 31.

    As mentioned above, this chapter has mainly focused on issues related to the Japanese market, because more than half of Chilean salmon was exported to Japan during this phase .

  32. 32.

    Photographs show (from upper left to right) Pablo Aguilera, Adolfo Alvial, Gustavo Araya, Rodrigo Balart, Boris Cotreras, and Oscar Gárate; (from lower left to right) José Miguel Hernández, Rodrigo Infante, Hector Novoa, Vjekoslav Rafaeli, Mario Puchi, and Alfredo Valenzuela (from the feature story of AQUA , December 2007 issue).

  33. 33.

    This and other statements of Mr. Ariaky Nagasawa is from an interview with him in August 2010.

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Acknowledgments

In addition to the references listed here, the author consulted a number of articles and books listed in the bibliography of Chap. 2 and drew on approximately 80 h of interviews with Chileans and Japanese considered to be key people in the development of the Chilean salmon industry .

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Correspondence to Akio Hosono .

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Hosono, A. (2016). The Chilean Salmon Industry Takes Off: From the Commercialization to the Early Development Phase. In: Hosono, A., Iizuka, M., Katz, J. (eds) Chile’s Salmon Industry. Springer, Tokyo. https://doi.org/10.1007/978-4-431-55766-1_3

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