(IntraFish) Prices of fish feed raw material are likely to become more volatile than usual this year, the head of Skretting, Knut Nesse said.
"Prices of both marine and vegetable raw material have swung more in the past three to four years than they have in the previous 20 years," Nesse, who is preparing to take over as head of Nutreco, Skretting's parent company, in 2013, told IntraFish.
Nesse lists several factors for his forecast.Of these, the underlying one lies in juveniles and catch. There are always bad and good years, causing price swings due to demand and supply.
The demand has also become more global. There are for instance more players now interested in marine raw material than before, such as Chinese buyers who use it for pig and poultry feed.
The new fast-growing middle class in Asia will also demand more protein in the future.Combined, these factors are putting pressure on raw material prices for feed.
Demand has also emerged from a new source -- raw material for bio-energy.In addition investors have taken an interest for the raw material segments.
"All these factors combined mean that the situation is becoming more global, harder to get an overview of and more volatile," Nesse said.