IFFO, the Marine Ingredients Organisation, has released new info indicating that June’s marine ingredient performance far outstripped the average for the same month over the last 10 years.
According to data accumulated by IFFO – which is sent to its members in a regular market intelligence update – June’s raw material production for marine ingredients was almost 60 percent higher than the average production between 2011 and 2019. That is largely “thanks to the positive performances of Peru, Northern Europe, and India,” IFFO stated.
Fishmeal production, including salmon-based meal, has “continued to recover,” and was below last year’s June output by 7.5 percent.
Cumulative fish oil production, as well, was down 7 percent, “with significant drops in Peru, India, Iceland, and the U.S.A.” However, according to IFFO, African countries’ production is improving, “mainly thanks to a better performance in South Africa.”
A special focus in IFFO’s report is China, which according to the organization is “by far the main market for marine ingredients.” In spite of the ongoing impacts of COVID-19, China managed to post 3.2 percent GDP growth.
Despite that growth, fishmeal plans in the region are operating at low capacity, according to IFFO, due to a shortage of raw materials. As a result, fishmeal imports are starting to increase.
At the same time, enhanced inspections at ports on both imported and domestic products that stem from COVID-19 concerns, which has led to customs slowdowns, is complicating supply chains, and stocks of fishmeal imports in ports have declined. However, according to IFFO, “new crops of Peruvian fishmeal are expected to be available in China in August.”
Another key issue, according to IFFO, is the flooding of the Yangtze River basin, which has hit aquaculture and farming operations.
Photo courtesy of IFFO
