The Marine Ingredients Organization – IFFO reported a cumulative total fishmeal production during the first five months of 2023 down by more than 10% compared to the same period in 2022, for the regions for which IFFO regularly tracks production. The primary factor driving such a decline is the production drop of approximately 50% reported in Peru, where the first fishing season has not been authorized yet.

As for fish oil, total cumulative output in the first 5 months of 2023 was 22% down year-on-year. The only countries that registered a positive change were Chile and the USA.

Domestic production remains poor in China

This year, farmers are facing additional risks of economic losses due to escalating costs of aquafeed and stagnating farm-gate prices. Should this trend continue, farmers could soon be exposed to even greater financial risks.

Following the implementation of the fishing ban on May 1 on all fishing grounds to allow the biomass to reproduce, domestic fishmeal and fish oil production remain poor and dependent on little frozen fish caught in the last season and byproducts from fish and shrimp processing plants. This situation is expected to persist until the fishing ban is lifted in September. Considering the lower-than-average domestic production both in the second part of the year 2022 and in the first half of 2023, China has continued to increase its fishmeal imports.