Irish farmed salmon is already a recognised quality product with a competitive edge in the marketplace. The challenge now is to build on the potential for sustainable expansion of the sector. The Minister of State headed the fact finding mission to Chile last year to assess the progress made there in the salmon farming sector. The Chilean salmonid farming industry has many similarities with the Irish industry and produces Atlantic salmon, Pacific salmon and rainbow trout. The salmon industry in Chile is a relative newcomer but in just ten years its production levels have increased dramatically and Chilean production is now second only to Norway. Total salmon production reached 215,000 tonnes last year and output is largely exported to the US and Japan.
The Irish salmon farming industry produces around 18,000 tonnes valued at £46 million with 75% of production exported to EU and international markets. The visit entailed a wide-ranging assessment of all stages of the Chilean salmon farming industry, as well as the policy, regulatory and research frameworks. The objective was to gain an understanding of the key success factors in the rapid sustainable development of aquaculture in Chile and to see whether that experience can be applied in the Irish context.
The Irish delegation visited coastal communities where salmon farming has transformed areas of high unemployment with jobs and growth. The Minister of State, Deputy Byrne, also had detailed discussions with his Chilean counterpart and with key players in the industry. There are well established links between the Irish and Chilean industry with significant salmon ova export trade to Chile from Ireland. Salmon cages have also been designed and manufactured in Chile under licence from an Irish company.
Salmon processing plants were particularly interesting. A key feature of Chilean production is the level of value added achieved. Most of our farmed salmon is exported in whole or nearly whole form. The Chileans by contrast, who are geographically remote from their main markets in the USA, Japan and Asia, market their fish as added value fillets, steaks and other cuts of frozen and fresh fish. More than 15% of its salmon is exported in value added forms which allow for higher economic returns. While the whole fresh market will continue to be a vitally important one for Irish producers, opportunities for expanding the value added side must be systematically developed and we can learn from Chile in this regard.
Backed up by significant funding support under the national development plan, a new strategic framework for aquaculture development is being put in place. The Circa report into the future of Irish aquaculture which was launched last week provides the basis for these new directions. The strategic objectives are to achieve critical mass and increase value added in production, diversification into new species, best practice in line with stringent environmental guidelines and high standards of quality assurance. These will be critical to Irish success in the highly competitive market for top quality seafood products worldwide.