NEW YORK--(BUSINESS WIRE)--Increasing global fish consumption spurred by rapid economic growth in developing countries and a movement toward healthier diets in wealthier countries results in a positive outlook for aquaculture in Peru, according to a new Fitch Ratings report.
'Fish grown on farms now accounts for about half of the seafood consumed globally. Projections by the Food and Agriculture Organization show global consumption of fish growing to 22.5 kg/capita in 2030 from 18.4 kg/capita in 2009,' said John Wiske, an analyst in Fitch's Latin American Corporate group. 'Key aquaculture raw materials fishmeal and fish oil remain supply constrained, so prices should consequently continue an upward trend due to limited supply and rising demand.'
Because volumes can disappear quickly in aquaculture, the industry faces difficulty in obtaining financing and liquidity concerns. Developing a cash reserve sufficient to cover fixed costs during an environmental crisis would be considered positive.
External financing may be obtained in the absence of an emergency fund, using quota values as collateral due to the favorable long-term industry outlook. Some companies are seeking to eliminate some volume risk through global diversification.
Peru is expected to remain the largest exporter of fishmeal. Since 2008, Peruvian fishing companies have been assigned a fixed percentage of the seasonal quota. As a result, fishing companies no longer need to engage in a fishing marathon whereby they try to out-catch each other before the season's quota is filled.
Chile is also a major player in the industry - No. 3 in fishmeal and No. 2 in fish oil. The Chilean seafood industry is characterized by a robust aquaculture segment and internal demand for fishmeal products. However, in terms of influencing global supply and demand dynamics, Peru remains dominant.
For more information, a special report titled 'Favorable Outlook for Peruvian Fishing Sector' is available on the Fitch Ratings web site at www.fitchratings.com.
Additional information is available at 'www.fitchratings.com'.
Applicable Criteria and Related Research Favorable Outlook for Peruvian Fishing Sector
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