The China Fishery Group has increased its Peruvian anchovy fishing quota of annual total allowable catch (TAC) through the acquisition of the entire share capital of a Peruvian fishing company Pesquera Alejandria for the total consideration of $95 million (€76.5 million).
Alejandria owns a steam-dried fishmeal processing factory with a processing capacity of 40 tonnes of raw fish per hour, together with approximately 0.97% quota share in the north of Peru and 3.04% quota share in the south of Peru.
With this acquisition, the group’s share of the Peruvian anchovy TAC has reached 6.05% in north Peru and 10.91% in south Peru.
The deal makes China Fishery the sixth largest fishmeal company in Peru.
MD Ng Joo Siang said that as well as increasing the group’s market share in the Peruvian fishing industry, the acquisition will enable the company to create higher operating efficiencies.
Peruvian anchovy is an underutilised species that is mainly used for fishmeal and fish oil production.
The average market price of fishmeal has increased dramatically in recent months, largely due to growing demand from the aquaculture and animal-farming industries, particularly in China.
With only a relatively limited supply in the market, fishmeal pricing is expected to remain strong over the long-term.
The average market price of fishmeal has risen from approximately $900 (€725) per tonne in the third quarter of 2009 to more than $1,900 (€1,531) per tonne today.
Despite high prices, China Fishery’s first-half revenue from fishmeal operations fell 26.7% year-on-year to $45.3 million (€36.5 million).
China Fishery said it remained positive, and cited the increase in global demand for fish and fish products.
