Good harvests in South America boosted fishmeal production

Good fishing in South America and improved access to raw material has pushed fishmeal production higher over the last months with total production for 2011 about 40% above 2010 levels in the major producing countries. The increased supply eliminated any market fears of possible shortages.

Production 

Fishmeal production increased in Peru and Chile, the two main producing countries, to 1.6 and 0.5 million tonnes, respectively. Landings of small pelagic species were up during 2011, especially in Peru, + 127% to 7.1 million tonnes. Chile’s catches were also positive during the year, rising by 9% to 2.7 million tonnes.

Herring, mackerel and capelin catches in Northern Europe are increasingly used for direct human consumption. Bad weather in Northern Europe near the end of the year saw sprat landings fall in Denmark by 17% to 250 000 tonnes. As a consequence, fishmeal production in Denmark and Norway dropped 25% to 256 000 tonnes and in Iceland, UK and Ireland by 8% to 134 000 tonnes. South Africa also saw production drop 36% to 57 000 tonnes as a result of lower catches.

Exports

Peruvian shipments rise by 14% during the first three quarters to 1.1 million tonnes, with China’s purchases from Peru up 29% during the period. Chilean exports fell back, down 14% to 240 000 tonnes as the needs of the domestic salmon industry began to return to normal.

Markets

China: Chinese import volumes during 2011 (11 months) increased by 14% to 1.143 million tonnes.

Germany: Germany has registered declining imports for some time with volumes during January-September falling 61% to 98 000 tonnes.  

UK: Imports are down from the previous year by 17% to 66 000 tonnes. South America dominates the market with direct shipments of 63% of the total.

USA: The negative trend in imports continues. All US imports are sourced from South, Central and North American suppliers.

Outlook

Prices are not expected to change much over the next quarter. Despite the weakening of most economies, demand for fishmeal will be maintained as both terrestrial and aquatic animal production is expected to grow during 2012. High prices for species such as herring, mackerel and capelin for deliveries for human consumption will reduce the availability of these species for meal and oil production.