Drop in fishmeal prices 'not likely'

Catch quota trial fishing started this week ahead of setting quotas for the second fishing season in Peru. Mogster believes the quotas could end up at more than 5 million metric tons this year as compared to 3.8 million metric tons last year.

Last year’s quotas were low due among other reasonsto massive content of small fish, while the biomass appears tobe at its highest level.

Anchovy fishing in Peru is the most important in regard to production of fishmeal on a global basis, and as long as it isa vital ingredient of salmon feed.

But even if fishmeal production increases in the future, Mogster doesn't believe it will lead to prices dropping dramatically from the current level.

“Prices for fishmeal were artificially high and havefallen by around $500 (€375) per metric ton in Peru to around $1,500(€1,125) to $1,600 (€1,200) per metric ton," he told IntraFish.

"When prices dropped to this level we also saw a rise in demand and buyers came back," he said. "$1,500 (€1,125) to $1,600 (€1,200) is still a good price for fishmeal. We’re confident it’s an OK market ahead of us."

Neither is he overly concerned salmon feed is becoming increasingly less dependent on fishmeal, and that perhaps in five years time fishmeal might be phased out for salmon feed.

If fishmeal isn't used in salmon feed, it will always be in use in other areas, he said.

“It's not a new situation that substitutes have beenfound for fishmeal in fish feed," he said. "There is a pressing need to find alternatives to fishmeal in the fish diet if salmon farming is to grow.

"Production of fishmeal is not going to be able to increase over time," he said. "There will be a need for fishmeal still in the future, despite everything the protein content is more than 70 percent compared with around 45 percent in soy,” Mogster said during the company’s quarterly presentation held in Bergen on Thursday last week.