November 7, 2006

 

Fishmeal and fish oil supplies prices to remain firm for 2007

 

 

Global fishmeal and fish oil supplies would remain tight for 2007 and prices are therefore likely to stay firm, (International Fishmeal and Fish Oil Organisation) IFFO stated in a post-conference report on the outlook for the market.

 

IFFO is a global trade organisation which represents fishmeal and fish oil producers accounting for 95 percent of meal and oil traded internationally.

 

The lower production in 2006 and 2007, compared with 2005, reflects a responsible and precautionary approach to catch limits on the part of the relevant governments, especially in Peru and Chile, the report noted. 

 

The trend indicated that producers are committed to managing this situation and aim for stability, favouring longer term relationships with their customers, IFFO said.

 

The issue of sustainability has been top on the minds of delegates at the IFFO's annual conference held recently in Barcelona, where the report was released.

 

Little wonder, since a recent report in the influential Science journal pointing to a depletion of fishstocks created ripples in the industry.

 

Jonathan Shepherd, Director General of IFFO, dismissed concerns about the sustainability of fishmeal and fish oil, saying that those worries are largely unfounded.

 

The industry must address public criticism and explain why sustainability is not an issue, said Dr Shepherd, especially with retailers applying pressure currently.

 

Some in the industry have been building a solid reputation as responsible suppliers through open channels of communication between them and the public, Shepherd noted. This would be what the IFFO aims to achieve and for this purpose it would create a committee to address such issues, Shepherd said.

 

Echoing the call for sustainability, Jens Bjerg Sorensen, CEO of Schouw & Co. said present business models should have corporate responsibility, integrity and social viability as requisites, among other business factors.

 

Professor Ragnar Tveteras of the University of Stavanger, also stressed concerns about food safety and sustainability.

 

Through alliances with buyers and the aquaculture industry to deal with issues of concern together, the fishmeal and oil industry would add value and reduces risk for buyers and for itself, Tveteras said.

 

As for fishmeal supplies, even as weather reports indicate a mild El Nino in the coming months, it was yet too early to predict its impact on fisheries and fishmeal supply, Hector Soldi, President of the Peruvian marine science institute said. Peru is the largest supplier of fishmeal in the world.