May 7, 2010

 

China Fishery increases fishing quota

 
 

China Fishery Group Limited has announced the increase of its annual Peruvian anchovy fishing quota from 4.85% and 7.11% in the North and South of Peru to 5.08% and 7.87%, respectively.

 

This was brought about by the company's acquisition of the entire share capital of Deep Sea Fishing, a Peruvian fishing company with approximately 0.23% quota in the North of Peru and 0.76% quota in the South of Peru. The total consideration for the acquisition is US$18 million, which will be funded from internal resources.

 

Commenting on the acquisition, China FisheryManaging Director Ng Joo Siang said, "With a higher percentage of quota entitlement, China Fishery will be able to increase its Peruvian anchovy harvest volumes. This is in line with our strategy in Peru to seek acquisition opportunities which will allow the company to increase its access to Peruvian anchovy."

 

Currently, Peruvian anchovy is predominantly used for fishmeal and fish oil production. Driven by a growing demand but limited supply, the price of fishmeal has increased significantly from approximately US$900 per tonne in the third quarter of 2009 to over US$1,900 per tonne currently.

 

"We believe that global demand for fishmeal will continue to increase over the long-term in view of the increasing demand for aquaculture and animal-farming due to population growth and rising popularity of fish as a healthy source of protein. This acquisition will enable us to benefit further from this favourable market trend. Looking ahead, we will continue to seize acquisition opportunities in Peru as well as in the rest of the world," said Ng.