Reuters/Santiago

Chile’s salmon farmers are using record levels of antibiotics to treat a virulent and pervasive bacteria, driving away some US retailers including Costco Wholesale Corporation, which is turning to antibiotic-free Norwegian salmon.
The coastal waters of Chile, the world’s second-largest producer of salmon, are awash with a bacteria known as SRS, or Piscirickettsiosis. The bacteria causes lesions and haemorrhaging in infected fish, and swells their kidneys and spleens, eventually killing them. Unable to develop an effective vaccine, Chilean farmers have been forced to increase antibiotic use.
In 2014, the industry produced around 895,000 tonnes of fish and used 563,200kgs of antibiotics, according to government and industry data. Antibiotic use had risen 25% from 2013.
In contrast, Norway, the world’s largest salmon producer, produced around 1.3mn tonnes of fish and used 972kgs of antibiotics in 2013.
Chilean officials say their salmon is safe and the antibiotics have been approved by US food and drug regulators.
Still, amid growing concerns in the US food industry that heavy use of antibiotics in animals can spawn drug-resistant superbugs and endanger human health, Costco said in April that it would reduce imports of Chilean salmon.
“The whole industry is starting to shift,” said Jeff Lyons, who oversees fresh foods at Costco, the No 3 US retailer.
“If I was to ask you your biggest concern on produce, you might say pesticides. When we ask people in protein, generally it’s going to be hormones or antibiotics.”
Costco used to buy 90% of the 600,000 pounds of salmon fillet it needs per week from Chile, accounting for about 8.5% of Chilean salmon exports to the US. Costco said it intends to buy 60% of its salmon from Norway, cutting Chilean imports to 40%.
A former executive at a Chilean salmon producer said Costco’s move could hurt the local industry’s reputation and spur other retailers to follow suit.
In recent years, US grocery chains Whole Foods Market and Trader Joe’s have gradually phased out Chilean farm salmon in favour of antibiotic-free fish caught in the wild.
“This is the beginning of a change in seafood,” said Tobias Aguirre, the executive director of FishWise, a seafood consultancy that works with retailers such as Safeway and Target Corporation. Target has also eliminated farmed salmon from its shelves.
“Other retailers will look at their lead and try to better understand why Costco made this move, and I think they will follow,” Aguirre said.
To be sure, not every salmon buyer is that worried about antibiotics. Chile exported $4.4bn worth of salmon in 2014, up 24% from the previous year, according to industry group SalmonChile.
For some buyers, costs are paramount. Brazil’s biggest retailer, GPA SA, which buys some 3.6mn kgs of Chilean salmon per year, said demand for antibiotic-free fish in the South American giant is small, and the high cost of importing from Norway is a deterrent.
“The greatest demand in the Brazilian market is for fresh salmon, purchased, for now, from Chile mainly due to logistics,” GPA said in an e-mail.
Chilean salmon producers said there is no reason for consumers to worry. Farmers do not administer antibiotics for months before harvesting the fish, so any traces of the drugs that remain in the salmon when it reaches consumers are within tolerance levels, they said.

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