March 1. 2006

Chilean fishmeal prices hit record US$900 a tonne

Prices of Chilean fishmeal rose US$25 to hit a record of US$900 a tonne last week compared to the previous week.

The hikes in prices were caused by decreased raw material catches, which fell 11 percent, or 3.2 million tonnes, in 2005, according to figures released by the International Fishmeal and Fishoil Organization (IFFO).

The price of fishmeal has more than doubled over the past six years ago.  In 2005, Chile, the second largest fishmeal producer after Peru, exported 770,000 tonnes of fishmeal. Chile and Peru together dominate the fishmeal market and influence prices on the global market.

Higher prices for fishmeal often result in higher prices for farmed salmon and other aquaculture species since it is an important component of fishfeed. Feed companies have tried for years to increase vegetable content in fishmeal to replace raw fish but have met with little success.

Meanwhile, there is increased demand for fishmeal, especially from China, where fishmeal is also used in livestock feed.