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Acquaculture, Live Stock, World

China’s slow economic recovery impacting fishmeal and fish oil consumption

Cumulative total fishmeal production during the first ten months of 2023 was down by approximately 22 per cent compared to the cumulative production reported through October 2022, according to the IFFO reports. The predominant factor contributing to this decline must be attributed to the 60 per cent year-on-year decrease in Peru, whose activities were heavily affected by the El Niño phenomenon and the subsequent cancellation of the April-June first fishing season of the year.

As for fish oil, the total cumulative output in the first 10 months of 2023 was 20 per cent down year on year. The supply shortage in Peru (due to both fewer landings and lower oil yields) was here again the main cause for such negative performance. Chile remained the only country that registered a positive change year on year thanks to improved catches and higher-than-average oil yields in the South of the country.

The above figures are based on a list of countries considered in the IFFO reports – Peru, Chile, Denmark, Norway, Iceland, UK, Ireland, Faroe Islands, USA, South Africa, Ivory Coast, Mauritius and Spain

In Peru, around 66 per cent of the second fishing season’s quota had been landed in the north centre of the country. The early start of the second fishing season in the North-Centre of Peru, which took place in October and is usually scheduled in November, explains larger catches of small pelagics than usual when we compare October 2023 with October 2022.

In the USA, the menhaden fishing season officially ended in November. The new fishing season will resume in May 2024.

China’s slow economic recovery impacting fishmeal and fish oil consumption.

China’s domestic production of fishmeal and fish oil in quarter IV 2023 might exceed that reported in quarter IV 2022. Despite this, local fishmeal producers are encountering difficulties in selling their products due to a poorer demand and the abundance of standard quality fishmeal. As a result, the inventory of domestic fishmeal appears higher than it was a year ago. Cumulative imports of fishmeal from January to November have declined by 9.4 per cent year on year, in line with the weaker domestic demand from both aqua- and piglet feed producers and the reduced Peruvian supply.

China’s 2023 fishmeal consumption in aquaculture is not expected to surpass that of 2022, although a rebound in the global supply of marine ingredients might open new scenarios. Similarly, the pig sector is grappling with subdued prices, hovering around a low point. The anticipated higher seasonal demand for the period November-February has yet to materialise. At this point, farmers are banking on improvements in the second half of 2024.

China’s slow economic recovery impacting fishmeal and

Acquaculture, Environment, Live Stock, Supply Chain, Sustainability, World

The larger production of fishmeal in Peru due to the late start of the second fishing season

The world’s fishmeal production in the first two months of this year increased by 55 per cent from the same period of last year, according to the latest report from the Marine Ingredients Organisation (IFFO).

IFFO reports that overall marine raw material used was about 15 per cent higher in February 2023 compared with the same month last year. This was due to better catches in all the regions, bar Spain and the Icelandic and North Atlantic area.

The larger production of fishmeal in Peru due to the late start of the second fishing season in the North-centre area of the country was the main driver, but most regions have started the year with improved availability of raw material.

As for fish oil, total cumulative output in the first 2 months of 2023 was 20 per cent down year-on-year, mainly driven by the drop in production reported in the Icelandic and North Atlantic area.

Peru’s second fishing season in the North-Centre region was officially closed on February 5, with 84 per cent of the 2.283 million tonne quota landed. No catches are being reported in Peru at the moment; the industry is expecting the government to shortly conclude the evaluation of the Peruvian Institute for Marine Studies (IMARPE)’s report on the status of the anchovy biomass; official announcements on the quota and the starting date of the next fishing season in the North-centre of the country could come soon.

China’s marine ingredients and aquafeed production remain subdued. Little time is left before the new fishing ban along the Chinese coastline will be re-imposed on May 1. By-products from processed fish destined to direct human consumption are getting more important as a source of raw material for reduction, together with imports of marine ingredients.

Aquafeed production in the first months of 2023 has remained subdued, partly because of the seasonal activity slowdown in both the aquaculture and pig farming sector, partly because of the Covid wave that hit the country and the long holiday breaks. Aquafarming activities have so far remained confined to some areas of Guangdong, Guangxi and Hainan provinces. It is expected that the sector will reactivate when temperatures rise in April-May.

The larger production of fishmeal in Peru