China Domestic Production Update 2018/2019

Per CFO fishmeal annual conference report, total fishmeal imported is estimated at about 1.2-1.3 millions tons in 2018 which is lower than previous year mainly because the fishmeal int’l price is continuing firm at higher level and recent RMB depreciation which is not benefit for importing.  As for China local produced fishmeal, supply is also declining with details as below:

 

Fishmeal Production:

As for local produced fishmeal, it is no exception and continuing declining.

Total production from 900,000 mt annually in 2015 declined to about 560-580,000 mt in 2018 mainly because government imposed environmental production and also fish resources restriction.

 

We breakdown the various regions of FM production status under SH 2018 as below:

- Zhejiang: dropped from 80-100,000 mt to 70-80,000 mt

- Shandong: dropped from 400,000 mt to 100-150,000 mt

- Liaoning: remain at about 130-150,000 mt 

- Guangdong/Guangxi/Hainan: 260-300,000 mt (new emerging supply)

 

Remark:

. Estimation FH 2019 fishmeal production: 150,000mt

. In view of processing technology changed under the strict environmental production, Fish solubles production is largely reduced in China.
 

With the reduction of defatted fishmeal, the fish-soluble paste is naturally reduced. In order to improve the added value, the process is further improved.