Global fishmeal production decreased by about 27 percent in the first three months of 2024 compared to the same period in 2023.
The decline was due to below-average catches during the second fishing season in 2023 in north-central Peru. This reduction in quotas has led to lower catches in early 2024. According to IFFO, Ocean Components Organization.
Peru's anchovy fishery ended its second season on January 12th, with 25% of its catch remaining in the water. This further exacerbated the initial shortage caused by the cancellation of the first season in 2023.
A sluggish start to 2024 is on a positive note thanks to the latest quota quotas for Peru's anchovy fishery.In the north-central region of Peru, approximately 1,237,500 tons (MT), or Fifty percent of the anchovy quota of 2.475 million tonnes has already been caught within the first 23 days of the 2024 fishing season.
So far this year, Chile, the United States and African countries have shown better trends in fishmeal production compared to 2023, thanks to increased quotas.
Fish oil production also declined in the first three months of 2024. Production decreased by 30%, but this was also due to the Peruvian fishing season. As of 2024, only the United States and African countries are on a positive trend.
IFFO reported that demand for feed ingredients in China continues to be weak and fishmeal imports will decline until March 2024, confirming the “challenging situation prevailing in both the pig and aquaculture markets.”
“Due to current weak consumer demand, the aquaculture industry is struggling to reduce stocks,” IFFO said. “Initial estimates are that aquafeed production in the first quarter of this year is expected to be lower compared to the same period last year, reflecting the economic downturn.” The trend in feed raw material consumption is subdued. ”
However, analysts predict that the pig sector will recover in the second quarter of 2024 and demand may change.