Lower supply of fish oil Fish oil production declined in the opening months of 2009, in line with overall fishmeal production. However, because of higher oil content than last year, the decline was relatively lower. Fish oil prices usually follow quite closely the change in fuel prices. In fact, fish oil prices rose in the second quarter of the year, following fuel prices upwards.

In the first three months of 2009, Peru exported some 52 500 tonnes of fish oil, down 22% from the same period of 2008. This product was mainly shipped to Belgium, Denmark, Chile, Canada and Norway. These five countries accounted for 72% of total Peruvian fish oil during the first quarter of 2009. The salmon crisis in Chile led to a reduction in fish oil exports to this country.

Fish oil production increased in the course of the second quarter of 2009, after the continuous decline experienced in late 2008 and early 2009. However, owing to the extremely low soybean supply in the world market, soybean oil prices exceeded those of fish oil for the first time in seven years. Prices of both commodities are likely to increase in coming months, following the overall price developments of oil commodities.

Further price hikes likely

Fish oil production in 2009 is likely to be similar to that of 2008. Demand should continue to be strong, despite the problems of the Chilean salmon industry. Fish oil prices are certain to increase further.