Global production of fishmeal and fish oil experienced a significant decline of 52% in July 2023, primarily due to a sharp drop in Peruvian supply following the cancellation of the country’s anchoveta season. According to IFFO, The Marine Ingredients Organization, Peru’s fishmeal production has seen a staggering 76% year-over-year decrease through July, dragging down global cumulative fishmeal production by 31% year over year.
Lower catches in reduction fisheries worldwide, except for Iceland, the North Atlantic, and Africa, contributed to the overall decrease in global production. However, the main reason for the substantial drop in global production, which was only down by 10% year over year through June 2023, was Peru’s decision to cancel the main anchovy fishing season in the north-central zone in June 2023. The Peruvian Production Ministry (PRODUCE) made this decision to ensure the sustainability of the biomass.
The closure of the season and the subsequent rise in aquafeed prices have impacted seafood companies globally, from Norway’s Austevoll Seafood to tilapia producers in China. While Chinese fishmeal demand has decreased in 2023, and local production is also depressed, the country has managed to compensate with imports, according to IFFO.
China lifted its final domestic fishing ban in areas of the Yellow Sea and East China Sea on 16 September. Although operations in open fishing grounds have resulted in below-par landings, similar to the same period last year, the current slowdown in fishmeal consumption is likely linked to the approaching end of the main aquafarming season and expected lower-than-average demand from the pig-farming sector.
“The current slowdown in fishmeal consumption is likely to be related to the imminent end of the main aquafarming season and to an expected lower-than-average demand of feed from the pig-farming sector,” stated IFFO in its monthly update. “Stocks of imported fishmeal are currently reported as being not far from the previous five-year average, as the Chinese traders and end-users have so far managed to navigate through the drop in the Peruvian supply of fishmeal and fish oil by increasing their imports from other origins.”
However, off-takes of imported fishmeal from main ports’ warehouses are below the average of the previous five years, according to IFFO. Global fish oil production also saw a 30% decline through July, with Chile being the only country to report higher year-over-year totals for the month.
