Peruvian anchovy fishing kicked off April 7 with high landings that are already having an impact on prices of fishmeal and fish oil for the aquaculture feed industry.

Peru’s Ministry of Production (Produce) opened the first season of the north-central area with a total allowable catch (TAC) of 3.3 million metric tons based on a detected biomass of 10.86 million metric ton assessed by the Instituto del Mar de Peru (Imarpe).

The quota is an increase of 18 percent compared with the same season last year. The actual harvests are never a sure thing, however.

In the second season of last year -- which ran from November through February with a number of halts in between -- Produce allowed total landings of 1.49 million metric tons, but harvesters only managed to catch 700,000 metric tons of anchovy.

This shortage of raw material prompted higher prices of superprime Peruvian fishmeal, which reached $2,000 (€1,622) per metric ton, as Peru had oversold volumes based on the high TAC.

With the higher quota for this season, prices are already adjusting, with harvesters claiming prices at the moment are roughly $1,750 (€1,419) per metric ton.

This season, harvesters are confident the quota can be fully caught, which will contribute to a stabilization of the prices.

“During the first days of fishing, average landings were 30,000 metric tons a day, with a high presence of the resource along the coast, that gives us a good prospect for the rest of the season,” Raul Briceno, CFO at Peruvian fishing giant Exalmar, told IntraFish.

Strong demand, strong supply?

The Peruvian fishing sector has suffered the impacts of extreme oceanographic conditions over the past four years, which in turn has forced feed companies to invest further in fish-free feed ingredients for aquaculture. However, fishmeal and oil processors are confident that demand is not at risk.

“Peruvian fishmeal is highly demanded, having a healthy biomass is positive for all the markets, especially after going through a few years of oceanographic phenomenon impacts,” said Briceno.

“Our fishmeal could have a wider distribution, not only in China but also in other destinations such as Chile, countries in Europe and other countries in Asia.”

Exalmar expects prices to remain at current levels or adjust even more as fishing goes along.

Generally, harvesters expect a recovery in fishing and a calm period after this year. Imarpe assessments show healthy stocks and a positive outlook.

“The 3.3 million quota is good news, the challenge is now to be able to fish it,” Gonzalo de Romaña, CEO of Peruvian largest anchovy quota holder Tasa, told IntraFish.

In the first season of 2017, Tasa was the most efficient fishing company, closing with a quota utilization of 98 percent, above the industry’s average of 85.8 percent, de Romaña said.

"We hope to repeat that level of performance this year," he added.

Fishmeal prices have adjusted to the new supply outlook after the shortage of the second season of 2017, de Romaña said, and he puts current price levels for superprime fishmeal at $1,750 (€1,419) per metric ton.

“This adjustment is down to the impacts of the second season of 2017,” de Romaña said.

“But everything suggests it will be a very positive year, something that is very welcome by the industry after the past four years.”

Science backs claims that stocks are healthy

The recent TAC suggests that stocks are healthy in Peru, contradicting claims by NGOs and other stakeholders that the Peruvian anchovy fishery is at risk of depletion.

“The registered anchovy biomass is 35 percent higher than the average of the past 25 years,” said Elena Conterno, president of the Peruvian National Fisheries Society (SNP).

“These figures brush off any questioning and forecasts about anchovy predation, the data corroborates the good management by Imarpe, Produce and the industry."

According to the SNP, the higher catches of anchovy will be a financial boost in the industry in terms of higher employment rates, GDP and export volumes.

“Over the past eight years, the industry has been below its balance point, which is 4 million metric tons a year, with the assigned quota we are seeing a turning point towards the recovery of the industry,” Conterno said.

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