Lower use of marine raw materials globally (March 2022 vs March 2021)
In March 2022, the overall performance of the countries analysed in the IFFO report was in line with the 2013-2021 average for the same month. This countries sample, based on the IFFO Membership, covers approximately 50% of the world production, and can be taken as a proxy for global trends. Overall, the raw material used in March 2022 by the countries considered in this report was 6% lower when compared to the same month in 2021.
In terms of fishmeal, India, the Iceland/North Atlantic area and the African countries were the only regions considered in this report which increased their cumulative production during the first 3 months of 2022.
In terms of fish oil, the US, the Northern European area and the African countries were the regions that reported a year-over-year increase.
“This is mainly due to a slow start in Peru, as the quota granted in the last quarter of 2021 was almost completely landed by the end of 2021. Usually, part of the quota is fished in January, and sometimes even in February.” explains Dr Enrico Bachis, IFFO’s Market Research Director.
China’s aquaculture season has started amid disruptions
The aquaculture season started in April amid disruptions to nationwide logistics chains caused by the enforcement of a zero-covid policy, lockdowns and travel restrictions. Unstable weather conditions are having a negative effect on aquaculture in South of China, where farming activities are carried all year long.
Fishing activities will resume in September. During the moratorium, marine ingredients production is majorly based on by-products from farmed species in South China. Imports of fishmeal appear to have decreased in the first quarter, following the international logistics crisis and a weakening domestic demand in the first quarter.
Domestic prices of soybean meal nosedived as the supply improved. Demand of corn for feed purposes has been weakening in line with the difficulties faced by the pig sector.
Despite the recent rebounds in the price of live pigs, the pork sector continues to suffer from over-capacity. A reduction of the pig stocks is what the industry expects in 2022. Pig feed output in March decreased, year on year, following a bearish pig market.
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 above, covering IFFO’s analysis on marine ingredient market trends for the first three months of 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 covering the January-April 2022 period, given that China is by far the main market for marine ingredients.