Fishmeal cost crisis looms for global aquaculture

Bloomberg says that wholesale prices have shot up and are now around US $3,000 a metric ton (£2,248).

Peru is the world’s leading supplier and exporter of fishmeal, accounting for almost a third of total global production.

Bloomberg says that exceptionally warm Pacific seas from El Niño conditions off South America, and issues with the anchovy fisheries, have resulted in repeated fishing suspensions and the lowest catch quotas for almost 10 years.

The latest information has been compiled by the International Marine Ingredients Organisation (IFFO).

It says that global production has dropped by 28% between in the first quarter of this year with output in March down by 38%.

The main issue seems to be around lower anchovy stocks, which is a main ingredient of fishmeal.

Fishmeal is one of the major costs for salmon farmers and other aquaculture producers and companies believe the higher costs will hit the sector and will eventually have to be passed onto consumers through higher prices in the shops.

Javier Blas of Bloomberg Opinion said fishmeal is one of the world’s hottest commodities is in the midst of a huge disruption.

He added: “It may sound like I am talking about oil and the blockade of the Strait of Hormuz, but this is even more severe.

“The supply shock is far greater — and so is the price response: Global production has plunged as much as 40% from a year ago; prices are up 80% over the same period to an all-time high.”