Fishmeal and fish oil producers’ association IFFO reports that the slow economic recovery taking place in China is affecting overall consumption of fishmeal and fish oil, and Chinese domestic production of both in the fourth quarter of 2023 could exceed that reported in the same period in 2022.
Despite this, local fishmeal producers are encountering difficulties in selling production due to reduced demand and an 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% 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. IFFO reports that the pork sector is also struggling with subdued prices, hovering around a low point – while an anticipated higher seasonal demand for the period November-February has yet to materialise.
The cumulative production of fishmeal and fish oil globally remains down, although as of 21st December, around 66% of the second fishing season’s quota in Peru had been landed in the northern-central region of the country. The early start of the second fishing season in northern-centra Peru, which took place in October and is usually scheduled in November, explains larger catches of small pelagics than usual.
In the USA, the menhaden fishing season officially ended in November. The new fishing season will resume in May 2024.
Cumulative total fishmeal production during the first ten months of 2023 was down by approximately 22% compared to the cumulative production reported through October 2022. The total cumulative output of fish oil in the first 10 months of 2023 was 20% down year-on-year.
The predominant factor contributing to this decline must be attributed to the 60% year-on-year decrease in Peru, where activities were heavily affected by the El Niño phenomenon and the subsequent cancellation of the April-June first fishing season of the year.
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.
IFFO’s figures are based on production reports from Peru, Chile, Denmark, Norway, Iceland, UK, Ireland and Faroe Islands, USA, South Africa, Ivory Coast and Mauritius and Spain.
