IFFO conference 2024: Peru's anchovy quota boost, sustainable aquaculture growth and climate resilience

This marks an increase compared to the previous seasons, which saw quotas of 2.283 million tons in 2022 and 1.682 million tons in 2023.

Peru typically accounts for around 20% of the global fishmeal supply annually, so the announcement was welcomed by delegates at the annual IFFO conference in Lisbon, Portugal this week.

That event featured around 30 speakers, who discussed strategies for various feed ingredients, along with supply and demand trends for fish oil and fishmeal.

Dr Enrico Bachis, market research director at IFFO, presented the organization’s 2023 data on marine ingredient consumption. He reported a decline in fishmeal exports, primarily due to reduced fishing in Peru, though India saw an increase in its exports. Fishmeal imports also dropped, with a slight reduction from China, while the rest of the world remained consistent with 2022 levels. Overall, fishmeal usage decreased, with 90% going to aquafeed.

With pet food, inclusion of fishmeal in premium dry pet food is slowly increasing, most notably in North America, Europe, and Latin America, with a growing market in Asia.

Fish oil imports into China decreased, but exports into the US saw a significant rise, mainly driven by demand for Vietnamese pangasius oil used as biofuel. The drop in overall fish oil consumption was largely driven by lower inclusion rates in aquaculture, except for in marine fish. Salmon remains the primary consumer of fish oil in aquafeed, while use in crustaceans has declined.

Aquaculture production surpasses capture fisheries​

Stefania Vannuccini, senior fisheries officer at the UN FAO and a key author of the biannual FAO State of Fisheries and Aquaculture (SOFIA) report, provided an overview of recent and projected trends in key species and producers.

She outlined how global fisheries and aquaculture production has reached an all-time high for both farmed fish and algae. The latest data show that aquaculture production has now surpassed capture fisheries, with the gap widening further when algae is included.

In terms of aquatic animals, 81% of production comes from Asian countries, while capture fisheries are more evenly distributed, with 41% of production in Asia. Aquaculture production is growing worldwide, with Africa seeing an 8% increase.

When looking at species production, eight out of the top 10 species produced globally come from aquaculture. Aquatic food consumption in Asia has more than doubled since 1981, and with increasing trade, this sector plays an important role in employment, with fisheries employing 62 million people globally, 54% of whom work in capture fisheries, she reported.

As the global population grows, more food will be required, but it must not come at the expense of the planet. Vannuccini emphasized that "aquatic foods are part of the solution, and their role in sustainable diets is crucial."

She noted that to meet future demand, aquatic production must grow by 74% in Africa and 24% in Oceania by 2050.

Vannuccini concluded by stating that 77% of global fish landings now come from sustainable stocks, but more work remains, especially considering climate change's projected impact on fisheries. She also stressed the need for the industry to make greater use of by-products and noted that fishmeal production is expected to remain stable in the coming years, but all resources must be utilized efficiently.

Sustainability remains a central theme  ​

IFFO director general, Petter Johannessen, citing the UN’s ambition for aquaculture to keep expanding in a sustainable manner, stated that despite being a blind spot to many, feeds must feature in the equation.

“There is no growth of the aquaculture sector without growth of the feed ingredient sector. The value of all resources needs to be explored and maximized.”

The IFFO is prioritizing collaborative fishery management, through an ecosystem approach, optimized use of resources through precision nutrition and circular raw material sourcing.

Repurposing fish resources not used in direct human consumption is a key element to that promise of growth, he said. This process is already under way and relies on infrastructure innovation, onboard vessels and on land, stakeholder collaboration and a paradigm shift.

Gideon Rachman, chief foreign affairs commentator at The Financial Times, provided insights into global geopolitics, and the potential impact of conflicts on the world economy, noting a growing trend toward protectionism, particularly in the US and China. He highlighted the securitization of economics, which began during the pandemic when the vulnerability of key supply chains became apparent. This shift has prompted a move from "just in time" to "just in case" delivery strategies.

Luisa Valente, professor at the Interdisciplinary Centre of Marine and Environmental Research at the University of Porto, discussed the challenges of communicating the nutritional benefits and environmental impact of protein ingredients to the public.

In aquaculture, the diets of fed fish—particularly species like salmonids, catfish, and shrimp—are complex and protein-intensive. She stressed the need to fully understand the nutritional value of all feed ingredients, how fish process them, their effect on fillet quality, and the level of social acceptance. The quality of fish fillets, including their levels of omega-3 fatty acids (EPA and DHA), vitamins, and minerals, is directly influenced by the feed and its absorption.

However, it's also crucial to evaluate these ingredients using standardized metrics. Marine ingredients, she noted, can be sustainable when properly managed.

Valente added: "Both marine ingredients and land animal proteins currently face low social acceptance, and we need to work on improving this."

Jim Cannon, CEO of Sustainable Fisheries Partnership, talked about how key it is to future-proof feed to protect ecosystems and enhance climate resilience. Referring to SFP's newly launched feed solutions toolkit​​, he said aquafeed production continues to have negative environmental and climate associations, citing issues such as land conversion, deforestation, overexploitation, pollution, and bycatch.

Fisheries will continue to be affected by rising temperatures and decreasing oxygen levels, which will reduce fish productivity and increase volatility, he warned. As fisheries become more challenging to manage, collaboration between the industry and governments will be crucial to improve data collection, develop regulations, and ensure compliance.

There is a need to position aquaculture as a low-carbon protein source that can meet future food demands and consumers should be encouraged support companies actively driving change, he remarked.

Financing salmon farming growth​

Delegates also heard from Carl-Emil Kjølås Johannessen of Pareto Securities. He noted that global stagnation of salmon supply has led to increasing salmon prices and high profits for farmers. Production is increasing in areas such as Norway and Chile and is expected to slightly increase in coming years. Demand is growing in most markets and prices have now stabilised and will likely continue.  

As demand continues to grow, alternative production methods such as land-based farming, closed systems, and offshore farming are gaining attention.

While uncertainty persists due to new regulations, especially in Norway, investment in technology—largely financed by equity—will be crucial for future growth. Infrastructure funds and private equity firms are backing new projects, while traditional farming focuses on technology and efficiency improvements, he concluded.

Mediterranean aquaculture​

Nikos Papaioannou, chairman of IRIDA, discussed the rising supply and demand in Greek and Turkish aquaculture, primarily for sea bass and sea bream. The market is seeing increased demand for ready-to-cook fish and deli products, with growth expected at around 5% in the coming years.

Despite regulatory challenges and high production costs, the sector is evolving toward certified products and higher-quality fishmeal and fish oil. However, issues like feed design, health management, and environmental impact remain key challenges, according to the speaker.