GOED perspective on global fish oil supplies

The Peruvian anchovy fishery is the largest source of oil for the global omega-3 dietary supplement industry, as shown in Figure 1 (anchovy oil is the source of the common refined and concentrated categories).

While the cancellation is positive from a sustainability perspective (demonstrates a well-managed fishery), Peru’s anchovy oil shortage comes at a particularly difficult time, as crude oil production in 2022 was very low.

Figure 1

Lower than in the past few years, resulting in higher prices.

As a result, many customers did not buy oil and chose to rely on existing inventory in anticipation of a better season in 2023. This has led to a combination of lower than usual inventories and a difficult supply situation.

Of course, the omega-3 industry is about more than just anchovy oil, as omega-3 products are found on store shelves from many other fish sources including salmon oil, tuna oil, cod liver oil and pollock oil, as well as other marine sources such as krill and… Calanus.

Algae is a fast-growing and desirable alternative source of EPA and DHA, but has historically been priced much higher than fish oil. And last but not least is GMO Canola Oil, a new entrant to the market by offering a plant-based alternative.

Many of these sources are well positioned with inventory available; However, all of these sources combined currently cannot come close to making up for the shortfall in anchovy oil supplies. There is great interest in increasing production from these sources, and this will go a long way to help manage the risks inherent in the volatility of fish oil availability, but efforts to scale up production will take time and will not resolve the current situation.

(Tags for translation) Regulation and Policy

You may also like...

Leave a Reply

Your email address will not be published. Required fields are marked *

%d bloggers like this: