Fish meal logistics under pressure from coronavirus

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No country in the world consumes more fishmeal than China. Major producer Austevoll Seafood is now noticing the effects of the fast-growing virus.

“After the Chinese New Year, it’s usually quiet for a two-week period, but since then the logistics have been significantly slower than usual, it has also gone out of stock from China than usual. This is something that we are following very closely, but things have been OK for the time being,” said CEO Arne Møgster during today’s presentation of results according to TDN Direkt.

Inventory levels in China are generally said to be at lower levels, which is natural given that production in Peru has been lower, noted Møgster.

“The volume of fishmeal was down 30 per cent on an annual basis in 2019, mainly due to lower quotas. This has led to an increase in the price, which is now around USD 1,500 per tonne for low quality and just over USD 1,700 per tonne for high quality,” he added.

This morning, Austevoll Seafood presented its fourth-quarter results for 2019. It was characterized by reduced sales volumes from catches in Peru.