June 29, 2009

Fishmeal supplies are declining this year, as producers in Norway, Denmark and the UK received only 362,000 tonnes of raw material, compared to last year's 535,060 tonnes.

 

The 33-percent drop of raw materials has resulted in the average price paid per tonne of fishmeal increasing from NOK1,055 (US$163.5) to NOK1,278 (US$198).

 

The fall in supplies is due to the drop in landings by Norwegian vessels caused by the reduction in blue whiting quotas. By May 22, 2008, Norwegian vessels landed 363,000 tonnes of blue whiting. This year, landings fell more than 50 percent to 169,000 tonnes.

 

Norwegian vessels only have a quota of 12,000 tonnes of blue whiting left, and prices of herring for human consumption remain strong. That indicates that the chance of larger volumes of herring delivered for fishmeal production in the coming autumn is not very encouraging for fishmeal producers.

 

The Norwegian fish farming industry, which is supplied by local fishmeal producers, will likely be forced to buy imports to meet their needs.