Improved catches in southern hemisphere boost fishmeal production and drive prices lower.
Combined world production of fishmeal fell sharply last year caused by declining catches in producing countries in South America. By region, fishmeal output fell back 27% in South America whereas European production bounced upwards by 39% thanks to higher catches in Norway in particular.
Markets
As for fish oil, fishmeal prices reached record levels in February 2011 when there was much uncertainty about the level of new quotas in Peru. After a high of more than USD 1 800 USD per tonne (Peruvian prime), prices have dropped to levels between USD 1 300 and USD 1 400/tonne.
Peru, the major producer and exporter, saw exports drop during the first quarter as buyers were hesitant to commit given the high prices at the time. China remains Peru’s principal destination. During the same quarter, Chile saw its export volumes grow 10% compared with the previous year, again with China as the major destination. 2010 was an anomaly, however, as Chile’s industry and infrastructure suffered considerable damage from the earthquake of February 2010.
During the first quarter this year, all importing countries were down on 2010 as the record prices forced feed producers and other traditional users of fishmeal to increase the use of alternative proteins in their formulations. Thus, imports to major destinations such as Germany, the United Kingdom and the USA were all weaker.
