Mintec prices for Peruvian fishmeal have been trending down since the middle of June, falling 18.4% between June 17th and September 25th, mainly as a result of tepid demand from China. The fishmeal industry in Peru is highly dependent on Chinese imports. Peru is the world’s largest supplier of fishmeal and fish oil, with about 80% of its total production going to China to be used as feed for piglets and aquatic species such as carp and tilapia.
Chinese fishmeal demand has been impacted after a great percentage of Chinese hogs were killed due to the occurrence of African Swine Fever (ASF). This has had a negative impact on the Peruvian industry, as pork is the most consumed protein in China and farmers commonly use higher fishmeal content to feed piglets.
In addition, Peru’s fishmeal industry is being greatly affected by the depreciation of the Chinese Yuan against the dollar. The Chinese government has allowed the yuan to drift against the dollar in order to make Chinese goods cheaper in global markets and increase exports. However, this movement has impacted Chinese imports of Peruvian fishmeal, since it is mostly traded in USD, making it more expensive for Chinese buyers to purchase it.