Another Challenging Year For Fishmeal
2007 is shaping up to be yet another challenging year as regards raw material supplies for fishmeal.
The EU has laid down "initial quotas for the industrial species", which will be in force in 2007 until the biologists gain a better overview of fish stocks during the year and – based on that – are able to lay down the final quotas.
"In other words, we do not know how much fishing will be allowed during 2007. However, we do know that, on paper, the quotas are lower at the beginning of 2007 than they were at the end of 2006", Managing Director Triple Nine Fish Protein, amba (999), Nils Christian Jensen, said in his company's newsletter. "We also know that this year may see some dramatic changes".
"Iceland has been allocated a very small capelin quota, most of which will be sold for consumption. Right now, Norway may fish for blue whiting, while Peru is subject to a fishing freeze until April. As a result, fishmeal supply is limited.
"El Niño is expected in South America, which will also affect fishing and the fishmeal supply, although it is not yet known in what way, Jensen added.
"The price level has fallen slightly, but still remains high. Peruvian fishmeal is now five times as expensive as soy. When it was most expensive, the price was seven times as high. In price conditions regarded as normal, Peruvian fishmeal costs 2.5 times as much as soy".
"The rise of fishmeal is still determined by supply and demand, but at present so many unknown factors affect both supply and demand that we do not know whether the fishmeal price can be stabilised for any length of time".
