Fishmeal and Fish Oil

The normal global supply level of fishmeal is estimated at around 5 million metric tons, and fish oil at 1 million metric tons (IFFO 2015) but both are heavily dependent on fish catches and are in decline.  For example adverse el Nino effects in 2014 decimated Peruvian anchovy and Chilean sardine quotas which in turn pushed fish meal/oil prices to a record high.  Every-growing demands and extreme supply constraints are expected to contunue to drive price increases and the global fish oil market is expected to reach USD 2.93 billion by 2020.  (Source: Zion Research 2016)

Fish oil plays an important role in prepared diets for carnivorous and omnivorous aquaculture species. The growing aquaculture industry is expected to continue to drive the demand for fish oil and accounted for approximately two thirds of production in 2014.  Pharmaceutical applications accounted for around 10% of market consumption. The increasing awareness of the health benefits of consuming omega 3 fatty acid is expected to augment the demand for fish oil in the years to come.

There are approximately 300 dedicated plants worldwide that produce fishmeal. Peru is the largest producer of fishmeal followed by Chile, China and the Nordic countries.