IFFO – The Marine Ingredients Organization’s latest snapshot of fishmeal and fish oil production has found outputs of both are well behind the pace set in 2025.
According to IFFO, fishmeal output in the first seven months of 2026 is down 49 percent compared to the same period of 2025, and fish oil output is down 30 percent. The majority of that drop is related to Peru and Chile, but softer catches in Africa and Northern Europe have compounded to cause a global drop in production.
“The reduced fishmeal and fish oil supply from South America might be offset by some of the regions in Asia that have their peak fishing season in the last quarter of the year,” IFFO Market Research Director Enrico Bachis said. “China, India, and Oman are some of them.”
The drop in Peru through the first seven months is likely to continue, given one month later the country canceled its North-Central anchovy season leaving 1 million metric tons (MT) of quota uncaught. That closure is largely due to El Niño, which caused a large portion of juveniles in the stock and forced the closure. Peru had initially paused the fishery due to El Niño, and IFFO already reported shortages in its report covering the first half of the year.
IFFO said that as most fisheries are seeing weaker catch, China is beginning to ramp up its fishmeal production while demand for aquafeed is at a seasonal peak. The country resumed production in August, and according to the organization, production through July was better than levels seen a year ago. However, the availability of raw material “remains to be observed.”
“In China, August represents the peak of summer and a critical growth stage for aquaculture species. However, it is also a challenging period marked by heightened management difficulties and elevated production risks,” IFFO said. “Recent extreme weather events, including typhoons, have further disrupted coastal aquaculture operations. Although overall aquaculture feed demand has entered its seasonal peak, demand varies considerably across species.”
IFFO said specialty species like largemouth bass, snakehead, and yellow catfish are seeing weak farmgate prices, which has resulted in lower stocking densities that could result in weakening demand for fishmeal during the grow-out stage.
“In contrast, feed and fishmeal demand for high-value species with stronger profit margins remains stable or is showing signs of improvement,” IFFO said. “Nevertheless, persistently high farming costs with less supply have contributed to an overall year-over-year decline in fishmeal consumption.”
IFFO said China’s fishmeal consumption for its pig sector is also subdued, and the organization predicts it will not see a meaningful recovery during the remainder of 2026.
