Anchovy processing plant for non-human consumption in Peru. The strong anchovy fishing seasons in this country have driven fishmeal growth globally.
Photo: Produce.
The latest report from IFFO, The Marine Ingredients Organisation, indicated that, from January to September 2024, cumulative fishmeal production increased by almost 23% compared to the same period in 2023. However, this significant increase is due to only one producing country, Peru. While the South American country is up due to its strong anchovy seasons this year, the rest of the regions analyzed were down, including China, where total aquafeed production in 2024 is expected to be lower than in 2023.
As for fish oil, total cumulative production through September 2024 remained virtually unchanged, with a year-on-year increase of 1%. According to the report, this modest growth was mainly due to the good season in Peru as the increase achieved there almost offset declines in cumulative production in all other regions.
Data in the IFFO report are based on statistics shared by the organization's members - Peru, Chile, Denmark/Norway, Iceland/North Atlantic, U.S., African countries, and Spain - which account for 55% of global marine ingredient production.
Already in the first half of 2024, The Marine Ingredients Organisation reported that cumulative fishmeal production had increased by almost 36% compared to the same period of the previous year.
At the time, IFFO also said that the upward trend extended to fish oil production, which saw an overall increase of around 10% year-on-year to July 2024.
Peru - recently recognized as one of the best-managed fisheries worldwide - has historically accounted for an average of 20% of global fishmeal and fish oil production. If its first anchovy season of 2024 already fueled a global surge in fishmeal production in the first half of the year, we now see that it continued to do so until September, and all indications are that it will continue in the same vein for the remainder of the year.
According to information now provided by IFFO, since the second anchovy season in the North-Central region began last November 1 - that is, just over two weeks ago - almost 20% of the 2.51 million metric ton quota set for the season has already been met.
While this is happening in Peru, in China, fishmeal and fish oil production this year has remained subdued due to a lower wild fish catch. Production levels in 2024 are projected to be below those of 2023.
In addition, the aquaculture sector has entered its low season, and total aquafeed production in 2024 is also expected to be lower than in 2023. However, IFFO noted that fishmeal consumption is likely to rebound with the start of the next main aquaculture season in April 2025.
For the time being, cumulative fishmeal imports through September increased compared to the previous year, reflecting increased stockpiling despite low off-season demand.
It should be noted that, while the aquaculture sector is entering its off-season, the pork sector - a major consumer of fishmeal - is now entering its peak demand season. Fishmeal consumption in this sector remains primarily driven by commercial piglet feed, which, IFFO said, is mostly purchased by medium- and small-scale farmers.