The first 2024 anchovy season in Peru’s north-central fishing zone ended in June with more than 98% of the quota fulfilled (2.35 million tons). The marine ingredients industry sees this as a positive sign for the fishing and feed sectors, considering that Peru accounts for around one-fifth of the global fishmeal supply in an average year. A second fishing season will take place later in the year, based on independently set quotas taking into account the size of the biomass.
In Peru's southern fishing zone, the season ended with slightly more than 10% of the first season’s quota landed. A new quota of 251,000 tonnes has been announced for the second season, beginning on July 1, 2024.
In the first five months of 2024, cumulative fishmeal production in the countries analyzed in IFFO’s report* increased by 40% compared to the same period in 2023. The significant year-on-year increase in the Peruvian supply was the main factor behind such a positive trend.
When it comes to fish oil, cumulative output through May 2024 was approximately 10.8% higher year-over-year, again driven by the increased supply from Peru. All other regions analyzed in this report showed a decline in their supplies of fish oil in comparison to the first months of the year 2023.
China’s challenging conditions for feed ingredients
A nationwide fishing ban running from May to mid-September is preventing the usage of wild captures for the production of fishmeal and fish oil, while the use of frozen fish is currently minimal due to the high prices of the raw material. Cumulative imports of marine ingredients are decreasing, confirming the challenging conditions prevailing in both the pig and aquaculture markets.
Aquafeed production in the first half of 2024 remains below the amount reported during the same period in 2023. Despite some recent improvements in the farm-gate prices for certain farmed species, the reduced aquaculture activity in the first five months of 2024 might further weaken the demand for feed ingredients in the next quarter when most of these species will enter the grow-out phase.
On the contrary, the pig sector appears to be entering an uptrend in a new farming cycle, as prices have been strong over the past months. Pig farmers, however, are still striving to cut costs as much as possible to maximize profits, given the significant losses experienced last year. As a result, consumption of feed ingredients might not increase for the remainder of 2024.
*These data are based on statistics shared by IFFO’s membership, which accounts for 55% of global marine ingredients production: Peru, Chile, Denmark/Norway, Iceland/North Atlantic, USA, African countries, and Spain.
