April 4, 2005
China consumes nearly half of Peruvian fishmeal in 2004
China continues to be the major importer of Peruvian fishmeal, taking up over 809,000 tonnes of the 2004 total export of 1.78 million tonnes.
According to the USDA, Peru's fishmeal exports in 2004 were worth US$974 million, almost 32 percent more than the previous year. Fishmeal production for 2005 is forecast at 1.89 million tonnes.
|
Peruvian fishmeal export for 2004 (Jan-Dec) | |
|
Exporting to: |
Peru fishmeal (tonnes) |
|
US |
42,690 |
|
China |
809,630 |
|
Japan |
196,008 |
|
Germany |
143,318 |
|
Taiwan |
82,459 |
|
Canada |
50,382 |
|
Turky |
48,411 |
|
Spain |
38,170 |
|
Others |
367,400 |
|
Total |
1,778,468 |
| Source: USDA GAIN report Feb 23, 2005 | |
There are basically two kinds of fishmeal:
- Fair Average Quality (FAQ), with a protein content between 62 and 65 percent, is dried by direct fire.
- Prime fishmeal, indirectly dried by steam and with a protein content of 66-67 percent.
Fishmeal prices range from US$480 per tonne for FAQ fishmeal to US$600 per tonne for prime fishmeal.
The Peruvian fishing industry is still suffering from the negative effects of the 1997/1998 El Niño weather phenomenon which drove the fish away from the Peruvian coasts and halted all industrial fishing activity for 18 months.
In addition, the strong devaluation of Asian currencies in 1999, the main markets for Peruvian fishmeal, brought the industry almost to bankruptcy. Currently, the total industry debt is estimated at US$1.3 billion, of which about $150 million are paid annually. The three largest companies account for about 25 percent of the debt.
Of the 110 fishmeal plants along the Peruvian coast, 90 are currently working. The Peruvian fishing fleet is comprised of 984 boats. Total processing capacity is 7,500 tonnes per hour, about four times more than they are allow to catch.
Most of the fishing plants have invested significant amounts on better and more efficient equipment. Processing plants are now forced to comply with some environmental regulations. Therefore most of them are now investing in "tail-water" discharge recovery systems, and even airborne particle recovery systems, both of which translate into higher extraction rates (and profits). Plants are also forced to pump residual water at least 13 km and 50 metres deep. Larger producers are also investing in canning or freezing lines, to convert more of the catch to higher-valued products for human consumption, a trend expected to continue.
