March 13, 2006

European fishmeal factories may disappear as resources dwindle

European fishmeal capacity may be halved to 20,000 tonnes within two years due to raw material shortages, according to United Fish Products Managing Director Helge Korsager.

Although most would see that as a depressing news, Korsager said it would in fact benefit  the industry as such levels would make fishing sustainable and profitable for the fishing fleets and processors.

At a time when prices of fishmeal are at record highs, reaching about US$1018 a tonne, Korsager estimates that out of the 19 currently existing fishmeal factories, only six would remain in two years.

Evidently, United Fish Products expects to be among the remaining six as it announced plans for a new fishmeal plant in Ireland last week. The new site was located close to the quayside so as to be closer to the fishing grounds, Korsager said.