There are unique nutritional and health benefits to both man and animals from eating fish. Not only is fish an unrivalled protein source, but its content of omega-3 fatty acids has been shown to play a vital role in preventing heart disease as well as benefiting the immune and nervous systems.

Fishmeal and fish oil are manufactured from so-called industrial or feed grade fish which are mainly small, bony and oily fish and therefore not attractive for direct human consumption. This industry is located world-wide, but the largest producers are Peru and Chile thanks to the rich marine productivity of the Humboldt Current in the south Pacific.

History

      ●   Fishmeal has been used for thousands of years by many cultures.

      ●   In northern countries, fish oil was used as a fuel in oil lamps. The Norwegians produced fish oil as early as 800 AD, using by-products as fertilizer and animal feed.

      ●   Sun-dried fish as animal food is mentioned in the travels of Marco Polo in the 14th century. In Japan , fishmeal and fish oil have always been basic staple commodities

      ●   In the early 1800's, menhaden were caught in the USA for fish oil production:

            o   Rock-weighted process was used to press oil from cooked fish

            o   The residue (fishmeal) was used mainly for fertilizer

      ●   In the 1850's, a mechanical screw press was developed to press oil, later replaced with hydraulic presses.

      ●   Fish oil became used as a basic chemical ingredient in paints, lubricants, tanning, soap, printing ink, and for other industrial uses.

      ●   Fish oil, and especially fat-soluble vitamins, were primary products until the development of the industrial synthesis of vitamins, the production of petroleum-based lubricants, and the large-scale farming of oilseeds for edible oils in the 1950's.

      ●   Fishmeal was essentially a by-product of fish oil production.

      ●   Colonial writings in the USA describe the use of menhaden as feed and fertilizer, both wet and dried (caught from the shore in haul seines).

      ●   Fishmeal was also fed to sheep and other ruminants in northern countries ( Scotland , Scandinavia ) long before it became the well known protein ingredient fed to poultry and pigs.

      ●   During and right after World War II, fishmeal became the preferred source of high quality protein for the emerging US industrial poultry production, which was the beginning of modern poultry production worldwide.

      ●   Early on, fishmeal was also a preferred feed ingredient for on-farm pig feed production. It became naturally a key feed ingredient in modern pig production farms, particularly in northern Europe ( Denmark , Germany ).

      ●   Fishmeal accompanied the modern poultry and pig industries before becoming the key feed ingredient for the emerging aquaculture industry in Norway during the 1980's and then in many other countries ( eg Chile , China ).

Scale of production worldwide 

      ●   Annual global production is in the range of 6 - 7 million tonnes of fishmeal and a little under 1 million tonnes of fish oil except during the periodic El Niño years. This requires an annual catch of 25 - 30 million tonnes of feed-grade fish and unwanted fish processing waste; in other words 4 - 5 kilos of wet fish yield 1 kilo of fish oil and dry fishmeal.

      ●   In 2004 , the industry's estimated global fishmeal production was 6.33 million tonnes with a first hand sales turnover exceeding 3.0 billion US dollars. Global production of fish oil is estimated at about 930,000 tonnes , representing a first hand sales turnover of around 0.56 billion US dollars.

      ●   Until the 1940's , global fishmeal production was about one million tonnes per year. Production increased after World War II, reaching 2 million tonnes per year by the early 1960's.

      ●   In the 1960's and 1970's the fishmeal industry expanded in Peru , Chile , Iceland , Denmark , Norway , South Africa and other countries. Fishmeal production increased until the mid-1980's, and has been relatively constant at 6-7 million tonnes since then.

Annual Fishmeal Production (1961-2000)

      ●   Fishmeal and oil producers can be found all over the world with processing plants usually located along the shores of the major seas/oceans.

      ●   However, more than 80% of world production originates in ten countries, of which the two largest producers - and exporters - are Peru (31% of the total) and Chile (15%). China , Thailand and the USA rank respectively 3rd, 4th and 5th in terms of production, while three Scandinavian countries ( Denmark , Iceland and Norway ), Japan and Spain rank respectively 6th to 10th.

Global trade of fishmeal and fish oil

      ●   Fishmeal and fish oil are two of the most internationally traded commodities in the world with respect to their production because, generally, the main production centres (South America, Scandinavia, Asia) are far away from the main consumption centres (Europe, Asia). It is estimated that each tonne of fishmeal and fish oil travels an average of 5000 km to reach its end-user. Hence, two highly global markets which have to operate under heavy logistical constraints. Although most of the volume is still shipped by bulk vessels, a growing share of both products now moves to its final destination in containers. This is particularly true for those products of the highest quality range.

      ●   The trade in world fishmeal and fish oil totals about 4.0 - 4.5 million tonnes , of which fishmeal represents about 85% - 90%.

      ●   Five countries constitute the major exporters of fishmeal

            o   Peru and Chile are leaders at respectively about 1.7 - 2.0 million tonnes and 500,000 tonnes per year.

            o   Denmark and Iceland are the largest Scandinavian exporters at respectively about 200,000 tonnes and 230,000 tonnes per year.

            o   As a major trans-shipment platform in Europe, Germany re-exports around 200,000 tonnes per year.

      ●   The major fish oil exporting countries in the world are Peru (about 200,000 tonnes per year), Denmark (about 70,000 tonnes ), the United States (70,000 tonnes ) and Iceland (about 60,000 tonnes ).

      ●   With more than 1 million tonnes per year, China is the largest world importer of fishmeal , followed by Japan (about 400,000 tonnes ), Taiwan (about 250,000 tonnes ) and Germany (about 200,000 tonnes ).

      ●   With about 200,000 tonnes per year, Norway is the largest world importer of fish oil , followed by Chile (90,000 tonnes ), the United Kingdom and Canada .

      ●   Some countries export and import fishmeal and fish oil

      ●   Germany remains a key fishmeal distribution platform, covering a large part of EU demand as well as Central European markets.

      ●   Denmark is the major EU producer and also a major importer (more than 100,000 tonnes ).

      ●   The USA is a major exporter of white fishmeal (from Alaska ) and a significant importer of both South American and Scandinavian fishmeal.

      ●   Some fishmeal-producing countries utilize all of their domestic production. The Norwegian and Chilean salmon farming industry has been a major user of locally produced fishmeal and fish oil.

Usage by region

      ●   Although fishmeal and fish oil are shipped all over the world, three major regions are large users: Asia and particularly China , Japan and Taiwan ; Europe, particularly Norway , the United Kingdom and Denmark ; the Americas , particularly the United States , Canada and Chile .

      ●   In Asia, a major fishmeal consumer area but minor for fish oil, fishmeal usage is largely led by aquaculture, a traditional Asian activity (for example, shrimps in Indonesia ). In China , large quantities of fishmeal are incorporated into "concentrate" pre-mixes for poultry and pigs.

      ●   In Europe , over half of fishmeal usage is now aquaculture. Both fishmeal and fish oil are used in large quantities by the salmon industry all over Europe but particularly in Norway and Scotland . The development of marine aquaculture (sea bass, sea bream, etc) in southern Europe, particularly Greece , Spain and Turkey , has led to important flows of fishmeal around the Mediterranean Sea .

      ●   In the Americas , fishmeal and fish oil are widely used by the salmon aquaculture industry in Chile , Canada and the USA . Fishmeal usage remains active in the United States where it is a tradition to use the menhaden resource.

Importance of the industry to Peru

      ●   Peru produces about 30% of annual global production and about 45% of volume in global trade.

      ●   The Peruvian industry operates about 130 processing plants with a total processing capacity of about 9,000 tonnes of raw material per hour. One third of this capacity is specialized in processing Prime and Super-Prime Steam Dried qualities of fishmeal.

      ●   The fishing fleet comprises about 600 vessels of which about 550 are wooden vessels (most of them of smaller size for artisanal fishing). This fleet represents a total hold capacity of around 200,000 cubic meters .

      ●   The industry as a whole directly employs about 23,000 workers, of which 16,000 are in fishing and 7,000 in processing. In addition, the industry generates indirect economic activity (laboratories, logistics, trading, financing, various services) employing the same number again.

      ●   Total fixed assets of the industry are estimated at around 1.4 billion US dollars to which has to be added the investments in environmental programmes valued at about 150 million US dollars.

      ●   In 2004, the Peruvian fishmeal industry generated an annual internal domestic product of about 543 billion "new sols", i.e. about 150 billion US dollars.

      ●   Total 2004 fishmeal and fish oil exports reached 2.03 million tonnes , valued at 1.1 billion US dollars, of which fishmeal represented 1.75 million tonnes valued at 952 million US dollars (FOB basis) and fish oil 286,000 tonnes , valued at 150 million US dollars.

Continuing focus and the way ahead

      ●   The fishmeal and fish oil industry has greatly advanced technologically and there will continue to be strong focus on quality assurance to ensure traceability down the value chain.

      ●   As with all types of fishing, it's important to maintain strict controls in order to prevent over-fishing and IFFO policy is to encourage a sustainable industry.

      ●   The industry continues to look for added value opportunities for fishmeal and fish oil, such as diets for young animals, farmed fish and shellfish, and in the area of human nutraceuticals ( eg fish oil capsules)

      ●   Public awareness is growing on the unique benefits to human and animal health of a diet rich in omega-3 fatty acids and the need to encourage greater consumption of fish and fishery by-products as part of a healthy life style. The fishmeal and fish oil industry - together with their customers -  will continue to play a vital role in agriculture, aquaculture and human health & nutrition worldwide

(Source: IFFO Secretariat plus extracts from a presentation at "Aquaculture Global Fish Outlook- April 2005" by Ronald W. Hardy, Aquaculture Research Institute, Univ. of Idaho , USA )