A taste of the many statistics and analyses that can be found in the Market of intelligence reports that IFFO dedicates to its members is reported below, covering IFFO's analysis on marine ingredient market trends until May 2023.
Peru's reduced FMFO production drives global output down
For the regions for which IFFO regularly tracks production of marine ingredients, roughly worth 50% of the global output, IFFO reports cumulative total fishmeal production during the first five months of 2023 down by more than 10% compared to the cumulative production reported through May 2022. The primary factor driving such decline is the production drop of approximately 50% reported in Peru, where the first fishing season has not been authorised yet. At the time of issuing this report there is still no clarity on whether the first fishing season in the North-Centre might be authorised.
As for fish oil, total cumulative output in the first 5 months of 2023 was 22% down YoY. The only countries that registered a positive change YoY were Chile and the USA.
Domestic FMFO production remains poor in China
This year farmers are facing additional risks of economic losses due to escalating costs of aqua feed and stagnating farm-gate prices. Should this trend continue, farmers could be soon exposed to even greater financial risks, similarly, the pig sector continues to face challenges due to weak demand during hot summertime. Pig prices have been on a decline since last October, which has resulted in a continuous although insufficient reduction of the sow stock. The pig sector remains in fact affected by overcapacity and unprofitable farm-gate prices.
Following the implementation of the fishing ban on May 1st on all fishing grounds, to allow the biomass to reproduce, domestic fishmeal and fish oil production remains poor and dependent on little frozen fish caught in the last season and by-products from fish and shrimp processing plants. This situation is expected to persist until the fishing ban is lifted in September. Considering the lower-than-average domestic production both in the second part of the year 2022 and in the first half of 2023, China has continued to increase its fishmeal imports.