July 29, 2010

 

Costly Chilean fishmeal may soften impact on lack of output

 

 

The Chilean fishmeal industry believes that the high prices which are paid for their products in international markets will compensate for the decline in production which was experienced this year.

 

The decline has been considered as a consequence of the earthquake and tsunami that occurred last February, which led to the lowest catch of mackerel in Region VIII and a delay in sardine and anchovy fishing.

 

According to the National Fisheries Society (Sonapesca) general manager Hector Bacigalupo, 2010 will be a complex year due to the decline in the production of fishmeal, which is expected to fluctuate between 30% and 40% over the figures seen in 2009.

 

Statistics provided by Sonapesca showed that the industry produced 611,000 tonnes of the product and exports totaled US$607 million last year, a figure 23% higher than in 2008. This year, the average price of fishmeal reached US$1,628 per tonne.

 

The UN Food and Agriculture Organisation (FAO) recently said that the price of fishmeal in China has risen in recent months yet inventories in Chinese ports have reached their lowest recorded levels, suggesting that prices will remain high in the coming months.

 

This data was confirmed by the Chilean fishing sector, which also anticipated that prices in 2011 would average between US$1,500 and US$1,700 per tonne.

 

Although Sonapesca avoided making any predictions, but Bacigalupo is confident that demand will continue.