23rd November 2022
A taste of the many statistics and analyses that can be found in the market intelligence reports that IFFO dedicates to its members is reported below, covering IFFO’s analysis on marine ingredient market trends from January to September 2022. They include an analysis of both the supply and demand sides of the market, with research focusing also on the global trends of animal farming and fish catches, agri-commodities, commodities’ prices and general macro-economic conditions. A specific and additional focus is made on China given that China is by far the main market for marine ingredients.
Based on IFFO’s membership, which accounts for 55% of global marine ingredients production, we report for September 2022 cumulative total fishmeal production for the first 9 months of 2022 was in line with the cumulative production reported through September 2021. USA, India, the Iceland/North Atlantic area and the African countries were the regions considered in this report that increased their cumulative production during the first 9 months of 2022. The total cumulative production of fish oil in 2022 was 4% up than the cumulative production reported through September 2021.
“The European countries, the USA and the African countries were the regions that reported a year-over-year increase thanks to the extraordinary large capelin quota and catch in Northern Europe, a rebound in the landings of menhaden in the Gulf Of Mexico, and healthier catches in South Africa with respect to the same period in 2021” says Dr Enrico Bachis, IFFO’s Market Research Director, adding:
“The Peruvian anchovy historically has been providing the raw material to produce roughly 20% of the global tonnage of fishmeal and fish oil, with its prices becoming a world´s benchmark for all trades of marine ingredients. Therefore, the most impacting market update is today’s announcement by the Peruvian authorities that the second fishing season of anchovy and white anchovy in the North-Centre of the country for the year 2022 will start with an exploratory fishing exercise of 5 days, starting on that same day, the 23rd November 2022. The quota for this region has been fixed at 2.283 million tons.
The quota indicates a healthy biomass, estimated at 6,826,839 metric tons. Once again, the positive effects of the responsible management of the largest reduction fishery in the world is confirmed.”
China’s marine ingredients production remains subdued
After the difficult first half of the year, domestic production of marine ingredients seems to be struggling also in the second half of 2022. Supply remained subdued through October as raw material from wild captures was reported below expectations. The La Niña phenomenon affecting the distribution of the local biomass and the stricter environmental measures imposed by the Chinese authorities to protect the domestic fishery resources are often cited as the main causes for such disappointing performance. Nonetheless, cumulative imports of foreign fishmeal are slightly below last year’s levels, following the late start of the aquaculture main season back in May and the financial losses of the pig sector in the first part of the year.
Aquafeed production in September is expected to have decreased month on month, as consumption was severely affected by new Covid-19 lockdowns.
Pig prices weakened recently following a weaker demand in the areas hit by Covid-19 outbreaks. Supply is expected to seasonally grow in the rest of 2022, though, as the weather gets colder nationwide inviting higher consumption of pork. Given the recovery of the domestic pig supply, imported pork meat continues to decline.
Domestic prices of soybean recently surged as the supply became tighter when demand for animal started to improve. Soybean imports had risen in September in view of the seasonally higher consumption in quarter IV. Similarly, corn prices have started to climb.