February 13, 2007

Global fishmeal production 20 percent below average in 2006

A combination of climatic factors and reduced fishing quotas has drawn world fishmeal production in 2006 20 percent below average levels.

The reduction has caused prices to double in world markets as demand continues to grow in the rapidly expanding aquaculture markets.

Despite high prices and the availability of synthetic alternatives, feed makers still recognise the nutritional benefits of fishmeal.

In the UK, for example, fishmeal consumption had remained the same for 2005 and 2006 despite prices nearly doubling.

A fishmeal industry sponsored survey of pig producers also indicated that fishmeal is still widely used in pig feeds, especially in medication-free weaner and early grower diets.

Although fishmeal is several times more expensive than the next best alternative- soymeal, farmers are willing to pay the price for assured fertility and herd health.

Moreover, analysts believe fishmeal prices have peaked and are expected to come down this year with a return to more normal production levels.

Another development last year was also seen as a move which would do much to spur demand. Previously, the EU banned fishmeal being fed to ruminants as part of measures to stave off mad cow disease.

Last year, however, the EU opened the way for fishmeal to be used in multi-species mills and for fishmeal to be permitted once again in the diets of young ruminants. The latter was a move which proved immensely popular in the livestock industry- a FIN (Fishmeal Information Network) survey of Scottish hill sheep farmers after the announcement showed that more than 90 percent wanted to use fishmeal again. This was because most had encountered problems with their lambs when they had gone without fishmeal.