CHILEAN FISHERIES AND AQUACULTURE: THIRTY YEARS OF ACTIVITIES, DISAPPOINTMENTS AND PROGRESS

Tuna is not caught in Chile and shrimp neither tuna are locally farmed, and therefore they supplement other species and products that years ago were more plentifully available . These figures, although still relatively moderate, speak for themselves of the possibility of increasing national production for the domestic market, especially through farming, since traditional coastal fishing / wild mollusc’s extraction do not seem to have opportunities for significant developments in the foreseeable horizon, with products within the reach of most Chilean consumer.

Even if the surplus of sectoral foreign trade is very significant (some U% 7,747 MM per year in 2020-2022), it is no less true that the evidence of the need to increase domestic supplies, particularly with artisanal farmed production for human consumption, is again reinforced.

It is noteworthy that in 1990, aquaculture accounted for only 2.2% of the volume and 16.8% of the value of sectoral exports, while in 2022 is responsible for 56.8% of volumes and 81.3% of exported values. SERNAPESCA figures for 2023 indicate that these shares decrease to 54.6% and 79.3%, respectively. Figures imply as well that aquaculture exports show an average FOB value per kilo of U$ 7.7, while extractive fishing products are only worth U$ 2.4.

Finally, sectoral exports (fishing plus aquaculture) represent 9% of the total value of the country's exports of goods in 2022, and 9.5% in 2023, with aquaculture corresponding to

a 7.3% and 7.5% of these national totals, respectively, occupying a second place as exportable goods of the country in recent years and also validating from this point of view the importance of this activity.

GOVERNANCE AND OUTLOOK

The Chilean fishing sector has been the subject of great changes in recent decades. Among some notable sectoral situations, the following could be highlighted:

1. A sharp decline in the largest pelagic fisheries in the country, especially anchovy, common sardines and horse mackerel, responsible for the main losses in national landing, accompanied by significant decreases in the catch of hake and in almost all other coastal fishing items, despite increases in the catch of cuttlefish and a few other species (pomfret/’reineta’) in some periods. Beyond the drop in the catch of hake, other 'white' fish species are also declining and practically disappear from the table of Chilean consumers, such as the red and black conger eel, meagre and local soles.
2. The emergence and enormous development of commercially oriented farmed products, especially salmonids and mussels, which, as mentioned, occupy solid second places in the world after Norway and China, respectively. These crops boost the country's fish exports well above the previously existing limits, and allow for significant regional development, especially in the southern part of the country, and
3. Within this sector, artisanal fisheries and aquaculture are the activities that have developed the most in the last 30 years. In the former case volume increases are strongly linked to a limited number of pelagic fish and cuttlefish, with the first ones mainly used to produce meals. In the case of fish and cuttlefish, though, this occurs more at the expense of their previous capture by the industrial sector than due to net increases in extraction volumes.

Thus, while industry has decreased its fishing volumes by 69% in the last 20 years (2001-2003 to 2021-2023), artisanal activity has increased by 42%, especially with algae, cuttlefish, pomfret / ‘reineta’ and pelagic fish. Chilean fishing activity in international waters - included as industrial fishing - is also quite significant, and in 2023 reaches almost 125,000 tons, basically of horse mackerel, mackerel and krill (115,000 tons in 2022, with the same main species) and it is highly likely that these catches can increase in the future, if the necessary investments and equipment are made available, and regulations in international waters are reasonable and do not constraint national interests.

In any case, sectoral activities continue to focus mainly on exports, while the domestic market remains poorly supplied. The sectoral export vocation determines the need for companies with great production capacities, highly technical and competitive. These characteristics, though, which place Chile among the main fish exporters in the world, do not necessarily impact the supply of domestic consumption, which having a second level of hierarchy, receives less attention from industry, the State and even, consumers.

This fluctuating panorama has become even more complex recently, with the imminence of the enactment of new sectoral laws, this time, separately for extractive fisheries and for aquaculture. The discussion of these proposals by the current Government is taking place in Congress, and it is not yet possible to predict their date of enactment or their final content. To this end, the Government has held a good number of regional group meetings and encounters with different organizations of workers, employers and other agents, and it is already clear that there are strong disagreements between the various actors, a situation that will obviously delay and/or complicate the legislative process. At present, strong tensions prevail over possible reductions in industrial fishing rights, in favor of small-scale fishing, an issue that if approved, could generate substantial changes in the country's industrial fishing structure.

In this last sense, and highlighting some of the existing conflicts, the fisheries bill indicates textually that: '... In this regard, we must remember that Law No. 20,657 of 2013 established a division by fishing units between the artisanal and industrial sectors, which was harshly criticized for the arbitrariness of the distribution throughout the national territory between both sectors. Part of the focus on equity, in addition to scientific and oceanographic criteria, lead us to rethink this fractioning in this new proposal, as detailed below. It is crucial to guarantee territorial equity, offering fair treatment to all coves and their communities throughout the country, as well as to ensure equity in the conditions of social protection for artisanal fisheries. Finally, gender equity must be emphasized, recognizing and valuing the vital role of women in the fishing sector.'

Thus, the bill proposes that 50% of the hydrobiological resources assigned to the industrial sector be tendered, a figure that contrasts with the 15% that is currently used, a situation that challenges the claimed 'historical rights' that were considered in the text currently in force. Likewise, the text would limit the percentages of allocation of industrial fishing rights for participants in the auctions, in order to – it is said – guarantee greater and better levels of competition in the respective fisheries, issues that added to several other considerations speak of a profound destabilization of large-scale industrial work.

Likewise, aquaculture, especially salmonids farming, faces a strong and systematic controversy with authorities and environmentalist organizations, which has completely stopped the allocation of new marine concessions and prevented the relocation of others. Added to these facts is the paralyzing effect of the so-called Lafkenche Law (Law No. 20249 of 2008), which claims the right of exploitation of huge portions of the coastal zone by the native (‘original’) populations, jointly limiting the possibilities of aquaculture and even artisanal extractive work. Here, if applications for ECMPO (coastal marine spaces for indigenous peoples) are submitted and these are superimposed on applications from third parties in process, the former have preference over the latter, and consequently any possibility of use of the requested areas for farming (or, where appropriate, for fishing) is paralyzed, until the existence or not of a customary use is verified. The corresponding study should take no more than a year, but it has taken up to 4 years, postponing the decision making process.

In the case of farming diversification, there has been significant help from the State through CORFO to promote the work with new species and technologies. This support is complemented by financial contributions from the private sector. In these matters a rule that seems to be almost universally valid is complied with, implying that it takes 10 or more full years - without considering the development of new markets and the likely regulatory readjustments that are needed to facilitate or give viability to these new farming projects - to obtain results of commercial interest in new farming techniques, for new species, starting from their initial phases, as is happening in the case of yellowtail kingfish, red conger eel and/or meager, and offshore practices, among others. This did not happen with salmon, trout nor mussels, since the respective farming technologies were brought directly from abroad and only adapted to the national reality. Nowadays, when diversification processes in Latin America are mostly concerned with native species, for which, generally speaking there are no farming technologies available, or they have not been completed, the innovation process is costly, time consuming and difficult to be materialized in the most relevant aspects, therefore delaying or altogether inhibiting the expansion of the production matrix. Additionally, it is very likely that various native species lack broad markets beyond their immediate surroundings, a fact which does not guarantee economies of scale in production to ensure their economic viability. Alternatively, significant financial resources and considerable periods of time may be required to promote their introduction in other countries and/or consumer hubs, where demand could reach higher volumes and values of greater interest.

There is still also a lower relative importance assigned by the public sector to aquaculture, since it generally concentrates a large part of its resources, personnel and dedication to address the problems of traditional fisheries. In Chile it is particularly noticeable a lack of support for small-scale aquaculture producers, who after a long wait since 2003 for a statute that would facilitate their work, has seen a new regulation emerge only in 2021, which will probably not modify the status of these producers but marginally, missing a historic opportunity to promote their controlled production and generate stable work and well-being in several regions and rural areas of the country, while improving the supply of fishery products in the domestic market.

All these situations speak of a complex and uncertain outlook for the development of fisheries and aquaculture in the near future, especially in large-scale projects, which contrasts with the ample natural conditions and possibilities to develop competitive activities in an area that is important to the economy and exports, employment and job creation along the country. This uncertainties in fishing will increase with the presentation of the new law for aquaculture, so in the coming years it should not surprise if new investments are delayed, and/or even sectoral divestment occur, with implications difficult to predict in more detail for now.

The proposed measures in the draft fisheries law and those to be presented for aquaculture will clearly seek environmental sustainability. As well, in the case of fishing, there is a marked bias in favor of the artisanal fishing sector, which will affect industrial-level activities and their future investments. At the same time, the opinions of environmentalists and government groups could generate a legislation proposal for aquaculture where principles different from those of the business sector prevail, a fact which will also generate an unfavorable environment for the development of large or middle size activities. It is also probable that the new aquaculture law applicable to small-scale farmers to improve their prospects and combat negative effects of climate change will not produce meaningful results while in parallel not sufficient attention will be given to disruptive technological changes (farming in recirculation and/or in high-energy marine areas, among others), to which Chile will have to adhere, under penalty of losing competitiveness and markets such as those of China, the United States, the European Union, Japan and Brazil, etc.

In all, it is possible to imagine that a process of mergers and/or acquisitions of companies between aquaculture producers might take place, and a low if not zero growth rate in large-scale farming could prevail, added to the inability of small-scale aquaculture to develop and better meet domestic demand. Local entrepreneurs might also turn to investing in other farming activities in the rest of Latin America (perhaps in shrimp and tilapia, as well as in the production of salmonids with land-based recirculation systems) or in countries with a higher level of development, to take advantage of the know-how and surpluses accumulated along many years of hard work.

It can neither be ignored that aquaculture is currently over regulated, although with ineffective controls, resulting in losses in competitiveness, conflicts and less efficiency associated with the growing difficulties of industry in directing and promoting their activities with the necessary degrees of independence from the State, energy and creativity. In turn, the State organization is inappropriate with regard to the needs of this industry, especially with regard to aquaculture. As mentioned, the granting of new concessions, particularly for salmon farming is extremely complicated and ineffective, while industry requires a different and better dynamic, in a highly competitive world, where Chile develops its fishing/aquaculture sector with a clear export vocation, an orientation that this far has given it its best moments.

Clearly then, an industrial sector of notable extractive fishing development until the 1990s is currently slowing-down its pace, without being able to stabilize its work or make transcendental investments, and artisans, with regulations that have been gradually favoring them, follow a development course with a limited number of species, and decreases its relevance in the domestic supply of 'fresh' fish. This occurs in the face of manifest, growing and very well structured competition with poultry and pork suppliers, who currently enjoy a good reputation, offer well-standardized products, available all year round, thus systematically gaining greater acceptance from local consumers.

Likewise, national aquaculture, extraordinarily effective until the beginning of this century, has begun a process of progressive slowdown in recent years, mainly as a result of the impact of recurrent diseases and improper governance, generating uncertainty about its future, which otherwise should be very promising both with current species farmed, and based on a much more diversified productive grid starting as from the next decade, which this time must also accommodate new and important efforts in the north-central and northern areas of Chile.

Thus, and despite the undeniable potential of the country, this accumulation of questionable situations generates doubts about the direction that fishing and aquaculture will take in the near future, although if part of the conflicts and limiting situations are resolved, at least aquaculture should develop more quickly.

In any case, if just over thirty years ago Chile was basically a fishing country, today it can be said with pride that the country fish and farm at the same time and maintains outstanding positions worldwide in both activities. The country should be able to preserve and improve its situation in the future, based on local natural conditions, a brave and capable workforce and business, and a State that, while having to regulate and administer, must also assume with energy and conviction the necessary leadership to define the new and better directions for these noble activities.

[1] SERNAPESCA : Servicio Nacional de Pesca y Acuicultura

[2] Cifras de este párrafo obtenidas de los Informes Sectoriales de la Subsecretaría de Pesca y Acuicultura en 2024