The Ministry of Production in Peru has announced the first anchovy fishing season quota for the North-Central zone at 2.51 million metric tons, and the fishing activities, in general, have maintained a good momentum. At the same time, the global trade of fishmeal and fish oil gained upward momentum.

Production

Peru opened the first fishing season in the northern-central zone on 23 April 2021 with the total allowable catch (TAC) set at 2.51 million tonnes, the highest amount recorded over the past three years. On 30 June 2021, over 2.28 million tonnes of anchovy had been landed, which means 91 percent of the quota has been fulfilled, and the reduction plants in Peru will be able to produce fishmeal and fish oil from sufficient raw material supply. Along with the ongoing fishing activities in the northern-central region, the Ministry of Production also authorized the start of the fishing season in Peru’s southern region with a quota of 409 000 tonnes which began on 1 July 2021. In the first half of 2021, approximately 2.8 million tonnes of raw material were landed along the Peruvian coasts, resulting in some 700 000 tonnes of fishmeal and 120 000 tonnes of fish oil. This cumulative production is well above last year’s tonnage, with fishmeal up by 60 percent and fish oil by 83 percent, respectively. Chile and European countries saw seasonal oscillations in the production situation compared to the same period in 2020. In the first half of 2021, cumulative fishmeal production in Europe decreased by 29 percent while fish oil dropped by 27 percent mainly as a result of lackluster fishing activities.

Export

The total export quantity of fishmeal from Peru doubled from 184 000 tonnes in the first quarter of 2020 to 414 000 tonnes this year. Chilean fishmeal exports decreased from 64 000 tonnes in 2020 to 46 475 tonnes in 2021, a decline of 58.7 percent. In terms of fish oil, Peruvian exports increased from 26 360 tonnes in the first quarter of 2020 to 83 876 tonnes in the same period of 2021, up by 218 percent.

Market

Due to relatively low prices compared to previous years, Chinese buyers largely purchased fishmeal from Peru, which lifted the total import quantity to around 385 000 tonnes during the first three months in 2021. Consequently, fishmeal stocks in the main ports reached a very high level in China. The majority of supply was from Peru, accounting for over 60 percent of Chinese total imports. Other main exporters (Viet Nam, Thailand and Mauritania) to China also reported a growth in products destined for the Chinese market. Norway imported 15 percent more fish oil for the first quarter in 2021 compared to the same period in 2020. This will help provide sufficient feed for the promising salmon farming sector.

Prices

From the second half of 2020, fishmeal prices have been trending upward moderately. This has been attributed to the recovery of farming activities of the main markets, especially China, after the pandemic.

Outlook

Peruvian anchoveta landings look quite positive so far. But it is predicted that weather conditions in the main fishing areas will turn less favorable. Due to the surging presence of juveniles, fishing activities are likely to slow down, but this will not impact the overall positive pattern of this season. The quota for the first fishing season in 2021 in Peru has been almost met. The encouraging result will allow the fisheries sector in Peru to continue to recover. Prices have been increasing moderately in the past months and this trend will likely continue due to robust demand from the main consumers. The second fishing season in Peru will not start until the last quarter of 2021, resulting in lower supply in the third quarter of the year, which in turn will likely push prices upwards.