February 9, 2007

EU puts fishmeal quotas on hold to check fish stocks

The EU is imposing an initial quota for fishmeal while waiting for scientists to gain a better overview of fish stocks for 2007 before lay down the final quotas.

This has thrown the fishmeal industry into uncertainty as it would be unclear how much they would be allowed to catch this year. However, the quotas early this year were lower than those last year, said Managing Director of Triple Nine Protein, Nils Christian Jensen, adding that major changes are afoot this year.

Fishmeal supplies are going to be tighter this year as quotas are whittled down or frozen in supplying countries. For example, the top fishmeal supplier, Peru is imposing a fishing freeze until April. Fishmeal prices have doubled from their normal prices.

On top of that, weather conditions like El Niño is expected in South America, which are expected to impact fishing and the fishmeal supply.

With uncertainty prevailing in the market, market watchers are expecting prices of Peruvian fishmeal to undergo major changes in the months ahead.