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              Stocks are piling up in China, el nino is back in South America and Peru's fishmeal production and prices are under pressure

              Column:Industry News Time:2019-03-06



                  Core tip: Peru's fishmeal industry may experience a new round of el nino attacks this year. China's fishmeal inventory is high and procurement demand slows down. Peru will face double pressure of production and price.


                  This year, Peru's fishmeal industry may experience a new round of el nino attacks. China's fishmeal stocks are high and procurement demand slows down. Peru will face double pressure of production and price.


                  Wen: Matt Craze


                  Hu luyi


                  The fishing industry in northern Peru is worried about the possibility of a recurrence of el nino after heavy rains and rising sea temperatures in the region.


                  This year's quota for anchovies is expected to be about the same as last year's, with the southern and north-central regions producing about 6m tonnes. According to the Peruvian oceanic authority (IMARPE), warmer water in the region will change the habitat and migration routes of anchovies. Usually, schools of fish will swim closer to the coastline, while the offshore fishing rights belong to individual fishermen, not commercial fleets.


                  According to the Peruvian national fisheries association (SNP), anchovy biomass exceeded 10 million tons from 2011 to 2013. Due to el nino, anchovy biomass decreased to 4.4 million tons in 2014, then gradually recovered to 6.1 million tons in 2017 and 7.2 million tons in 2018.


                  The Peruvian fisheries association is hoping that this year's el nino will not be as strong as in previous years and that fishing quotas will not be severely affected.


                Peru's fishmeal industry has also been challenged by unnatural factors in recent years.Chinese fishmeal inventories hit a decade high in January, to Peru caused great pressure on prices on the one hand, China has increased the number of boats, on the other hand, African swine flu epidemic slowed the domestic consumption of pork a Peruvian industry executives said that China is likely to be a priority in the next few weeks to digest domestic inventories, overseas procurement demand will appear weak current, super Peru fish meal price is $1500 / ton, fish oil price of $1700 - $2300 / t/t (according to the rank, the highest levels of fish oil for human consumption) AustralGroup general manager Adriana Giudice said,Against west African rivals, processing factory recently completed the upgrading of Peru, 70-80% of Peru fish meal to upgrade to the so-called super fish meal category, the proportion is only 20-30% in the near future in the past, the government allows large commercial tug to 5 km of coastal operations (2012 large tug only sea fishing at 10 kilometers), it caused a lot of profiteering conflict, especially in southern Peru and Chile's border areas, the problem is particularly acutePeruvian fishery association, Peru and Chile Shared some anchovy fishing resources, but Chile to allow boats to distance 1 km coastline area operations, production, the increment of Chile from Peru in northern Chile has built a batch processing plants, factories face closure and bankruptcy of Peru Peruvian fishery association, from 1998 to 2011, southern Peru anchovies output of about 670000 tons, from 2012 to 270000 tons, hundreds of millions of dollars in income went to Chile, therefore, association called on the government and enterprise cooperation, to restore the Peruvian fish meal industry's competitiveness