April 24, 2007

Fishmeal production of major producers suffers 20-percent drop in 2006
 

Fishmeal production from the six main fishmeal producing countries fell from 3.5 million tonnes in 2005 to 2.8 million tonnes last year, a 20-percent drop.

The drop was even steeper in top producer Peru, where there was a 32-percent drop from 8.8 million tonnes in 2005 to 6 million tonnes last year.

In response, fishmeal prices climbed relentlessly last year and is expected to continue doing so this year.

 All main producing countries reported stable or higher export earnings from fishmeal as a result of these higher prices.

The unit value of fishmeal exported from Peru varies with the country of destination, being lowest for China at US$ 800/tonne and highest for Australia at US$ 1074/tonne.

Peru favours exports to countries that are willing to pay a higher prices. As a result, exports to Japan and Australia grew in 2006.

In Chile, fishmeal export prices rose strongly by 53 percent. Exports fell to 520 000 tonnes in 2006, compared to 710 000 tonnes in 2005. Still, export revenues were up 12 percent to US$515 million.

China is the main market for fishmeal products and in a move to take advantage of this market power, Pacific Andes, one of the major traders with China, bought leading Peruvian fishmeal processor: Alexandra SAC.