Peru fishmeal prices spike as market fears shortened anchovy season

 28.07.2016 09:10:08

Peru fishmeal prices spike as market fears shortened anchovy season
Aquaculture feed market expected to hit $123bn by 2019

June 6, 2016, 9:47 am
Matt Craze
Fishmeal prices are approaching $2,000 per metric ton as the market fears survey results, expected this week, will confirm this season will be short with lower quotas

Prices for super-prime fishmeal touched $2,000/t FOB as the industry awaits the first data from a second survey carried out by Peru's marine research institute, known as Imarpe, an industry source said.

Another source said super-prime trades have been carried out for more than $1,900/t.

The key number the industry is waiting to hear is the quantity of biomass in the sea. Imarpe identified a biomass of 4.4 million metric tons in its first survey earlier this year, prompting the decision to delay the season. The second survey needs a reading of over 5m tons for the season to begin, the institute said at the time.

Imarpe could restrict quotas to between 1m and 1.5m metric tons, as heightened ocean temperatures associated with El Nino haven not returned to normal, a second industry source said.

"This quota will be less than expected and prices are already being affected. The last few trades have been at about $1,900/t of super-prime but the market has been flat, waiting for the results of the new survey."

Six industrial vessels accompanied two government research vessels on the latest voyage that will conclude June 20. Imarpe said on May 23 -- two days after it began the second survey -- that it could allow fishing to start based on preliminary data as early as June 4.

Early data will show where the highest concentrations of anchovy are located, and a complete preliminary study on June 8 will prompt further decisions about the length of the season and quotas, Juan Carlos Requejo, fishing and aquaculture vice-minister said in a May 23 statement. Individual company quotas will only be fully assigned once the survey is completed, he said.

The delay has unleashed protest from Peruvian fishermen and a warning from non-profit Oceana that the first fishing period must conclude by July, to not interfere with the spawning season. The first season traditionally runs from May to July.

Further south in Chile, Compania Pesquera Camanchaca said the warm water caused by El Nino continues to wreak havoc with the fishing season. The company's catches were down 94% compared with the same quarter of 2015, as despite an abundance of fish in the sea, they were of a small size, the company said its quarterly statement.

Peru's agriculture minister Piero Ghezzi said on May 13 that research indicates colder ocean temperatures are returning to the Pacific Coast, replacing warmer, salty waters that are a consequence of El Nino.

Last year's first season was brought forward due to the risk of lower catches, which was also influenced by El Nino and the arrival of warm Kelvin waves that force anchovy to migrate to cooler, deeper waters. Quotas for the first season of 2015 were 2.56m tons