Carlos Diaz, CEO of Danish feed giant BioMar, expects a two-year freeze on investments in the salmon feed sector in Chile while supply and demand dynamics rebalance.
The supply balance was upset earlier this year when Chile's Agrosuper acquired AquaChile, a move expected to take around 12 percent of the feed out of the free market, which consumes between 1.2 and 1.3 million metric tons of feed annually.
Following the acquisition, AquaChile decided to end its 10-year old partnership with BioMar, under which both companies shared a feed production plant in Pargua and is expected to produce all its feed internally.
