Peru sets a temporary quota of 500,000 tons, anchovy biomass far below industry expectations

The trial fishing period began on November 7, and due to the temporary quota being too low, at around one-fifth of previous years, Peru's fishmeal industry found itself in a tense situation. Peruvian authorities expect to complete the scientific survey this week, but industry insiders are concerned that the new production season quota may be much lower than expected.

James Frank, General Manager of Peru fishmeal trader MSICeres, told UCN: "This is the first time we have started a new production season with a temporary quota system."

Before the latest news was released, the Peruvian industry had predicted that the quota for the B season would be between 2 million and 2.3 million tons. However, according to the latest data obtained by MSICeres, scientific data revealed that the anchovy biomass is around 5.4 million tons, lower than last year's 7.18 million tons. If calculated based on the usual distribution of fishing quotas, the new production season quota is expected to be between 1.5 million and 1.8 million tons, far below industry expectations.

From November 4 to 6, the Peruvian Ministry of Production will conduct a sea survey, with 18 fishing boats assisting scientific units to conduct a scientific assessment of fishery resources. The survey results will determine this year's quota figures.

Frank said that if the quota is too low, many fishmeal traders will be put in a passive position. The pre-sale volume of fishmeal for this production season is around 175,000 to 180,000 tons, which is based on a higher expected quota for pre-sales. If including contract orders from the European market, the pre-sale volume could reach 240,000 tons.

Over the past decade, the average quota for the B season of Peruvian anchovies was 2.19 million tons, with a high of 2.79 million tons in 2019 and a low of 1.49 million tons in 2017.

Due to the considerable uncertainty of the final quota, some traders have already suspended quotations. China, as the largest market for Peruvian fishmeal, has accumulated imports of 843,000 tons in the first nine months, with Peruvian fishmeal accounting for over 50% of the import volume.