IFFO reports decline in fishmeal and fish oil

IFFO reports decline in fishmeal and fish oil

In Peru, which typically produces about 20 percent of the world’s fishmeal and fish oil production, recent observations show an unexpected rise in sea temperature off the central coast, despite a weak El Niño. In the northern and central region, the next acoustic hunt for the first hunting season of 2024 is expected to begin in mid-February.

IFFO’s preliminary estimate of total cumulative fishmeal production for the countries (Peru, Chile, Denmark, Norway, Iceland, UK, Ireland, Faroe Islands, USA, South Africa, Ivory Coast, Mauritius, Spain) analyzed in its reports is around 1.738 million metric tons in 2023, about 23% less. percent than it was in 2022.

The main factor contributing to this decline can be attributed to a 52 percent annual decline in Peru, whose fishing activities have been severely affected by the El Niño phenomenon, with the April-June fishing season canceled in the north-central part of the country, and lower catch levels. of the average fishing quota during the last quarter of the year. Interestingly, the European countries analyzed in this report were the only ones that showed an increase in cumulative fishmeal production in 2023.

Regarding fish oil, total production in 2023 decreased by 21 percent compared to the previous year. The significant decline in supplies in Peru (down 85 percent year-on-year) was the main reason for this negative performance, resulting from a lower number of landings and lower oil productivity.

Chile was the only region that was able to record an annual increase in production, thanks to healthy catches and higher-than-average oil productivity in the southern regions.

Decreased demand from China

On the trade side, IFFO attributes the year-on-year decline in China’s fishmeal imports for 2023 to lower prices in the pig and aquaculture markets. The aquaculture sector finds itself in a dilemma due to an oversupply of aquatic products and a slowdown in demand. According to the China Feed Industry Association, aquafeed production in 2023 recorded a decline of 4.9 percent year on year. Industry insiders don’t expect much change in the first half of 2024.

The pig sector, a large user of marine ingredients in feed, continues to face oversupply. According to the latest release from China’s National Bureau of Statistics, pork production in 2023 increased by 4.6 percent year-on-year – the highest production since 2014. In contrast, pig feed production increased by 10.1 percent year-on-year in 2023. Excess supply and rising feed costs are putting pressure on pig farmers’ profit margins, forcing them to take drastic cost-cutting measures, including adopting new feed formulations.

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