Peru’s strong anchovy season has provided a boost to global fishmeal production, but weaker demand from China poses challenges for market stability.
Photo: Produce.
Peru has seen a notable rise in fishmeal production during the first half of 2024, driven by an exceptionally strong first anchovy fishing season in the North-Central region.
Between January and July 2024, cumulative fishmeal production increased by nearly 36% compared to the same period in 2023, according to statistics from International Fishmeal and Fish Oil Organisation (IFFO), the marine ingredients organization that represents 55% of global marine ingredients production.
The upward trend extends to fish oil production, which experienced a global increase of about 10% year-on-year as of July 2024. This growth comes amid a scientific evaluation currently being conducted in Peru to assess the anchovy biomass in the North-Central region, with results expected by mid-October.
In contrast to Peru’s booming output, other regions have struggled. Small pelagic fish catches in Southern Chile and Northern Europe remain below 2023 levels, while in the United States, menhaden fishing in the Gulf of Mexico continues to "underperform", the IFFO points out. However, Atlantic fishing grounds in the U.S. have seen improved landings, exceeding last year’s figures.
While global fishmeal production rises, China, one of the largest consumers of fishmeal, is experiencing reduced demand in both its aquaculture and pig farming sectors.
Although all fishing bans along China's coastline have been lifted and domestic production is ramping up, the IFFO reports that fishmeal stocks in Chinese ports reached record levels in September 2024, reflecting weakened demand.
Typically, fishmeal demand peaks in the third quarter during China’s aquaculture season. However, despite an increase in fishmeal imports through August, domestic consumption has remained sluggish. The pig farming sector, entering its peak season, also shows little sign of significantly boosting fishmeal demand in the near future.
Adding to the challenges, plant-based feed alternatives like soybean meal and rapeseed meal are priced lower than last year due to weaker market demand. China has also increased its soybean imports, further impacting fishmeal’s role in feed production.