The “Nissui genes” that link marine resources worldwide to the markets. NISSUI Frontier
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for its Unique Integrated Aquaculture Business
Using Our Powerful Purchasing Network
to Promote Safe, Reliable Feed Production


   

Global Trends in the Fishmeal and Fish Oil Markets
and the Reality of Procurement

Nissui has Global Purchasing Office, a dedicated section based in Japan which handles the procurement of fishmeal and fish oil. What follows is a closer look at the global trends in the ;international markets for these two commodities.

In the fishmeal market, Peru and Chile are the world's two main producers and exporters, while China is the predominant importer and consumer, as shown in Figure 1. Given the world's high dependence on these two main producers, production volume is a supply-side problem which needs to be carefully monitored. Of particular concern is a reduction in Peru's fishing quota. On the demand-side, China looms large as the world's biggest consumer. Both China's imports and consumption of fishmeal have been expanding since the year 2000, with import volume growing at a rate of 40% year-on-year in 2004 and 2005 (Figure 3). In addition, world production of farmed salmon and trout is also rising (Figure 4).

Peru and Chile are also the world's major producers of fish oil, but Peru holds a dominant place as the world's number one exporter because Chile switched from being a net exporter to a net importer in 2000 in order to meet increased domestic demand for fish oil for aquaculture feed. As the world's major farmed fish producers, Norway, Chile and Japan each account for large shares of global fish oil imports and consumption (Figure 2).

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Fishmeal prices have historically depended upon fish catches. However, that is now changing rapidly. Given declining fish resources, positive developments in sustainable fishing, and problems such as BSE and bird flu, consumption of fish as food is likely to rise in the future. With no corresponding increase in supply in sight, how demand is assessed is set to become a crucial point.

Engaging in local purchasing activities together with Nissui's Global Purchasing Office in Japan are group companies Nippon Suisan America Latina,S.A.(NAL) Chile and NAL Peru. Both Japanese and local staff work at these group companies. NAL have a history of purchasing fishmeal and fish oil from Chile and Peru for supply to Japan and Salmones Antartica,S.A.(SA), a Nissui group company in Chile which operates a vertically-integrated salmon and trout farm utilizing its formula feed plant . Staff regularly conduct buying trips to local fishmeal companies, where they also collect information about changes in fish catches and weather patterns.

Of the fishmeal procured, a little less than 70% is sold to Japan, 20% is sold by NAL to SA in Chile, and the rest is sold to China. Likewise, in the case of fish oil, a little less than 80% is sold to Japan and 20% is sold by NAL to SA. Almost all of the fish oil supplied to Japan is taken to the Onagawa Fish Feed & Oil Plant for refining and processing into value-added products which are used mainly as feed oil, but also as ingredients in foodstuffs such as margarine, pharmaceuticals and health foods. Most is sold to other companies, but around 30% is used for feed produced at Nissui fish feed & oil plants and as functional oils and fats (EPA & DHA) in pharmaceuticals, foods for specified health use and other health foods produced by the Fine Chemicals Business.

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