CEO Christian Bisgaard writes about

CEO Christian Bisgaard:

Satisfactory landings

So far, the fishing for sand eel has been good this year and satisfactory quantities of raw material have been supplied to TripleNine.

Although we had hoped for a total quota of approx. 400,000 tons, the Danish quota of 334,324 tons should provide TripleNine with the raw materials that we need.

First of all, the agreed quota means that it has been possible to continue the fishing in May - without interruptions as was the case last year.

It will, however, be interesting to see the outcome of the new division of the North Sea into smaller areas, which may each be subject to regulation.

In April this year, the quantity of sand eel landed at the factory in Thyborøn was twice as large as last year and the good fishing continued during the first two weeks of May. I therefore hope that the landings in May will be comparable to last year's.

New members

The larger landings received by TripleNine are above all due to the recruitment of six new members this year and the supply of considerable quantities of raw material by so-called "free" vessels, i.e. vessels that are not owned by members.

The fishing has also been good for the established members.

Declining world market price

However, it is not only in the North Sea that the fishing has been good this year.

In Peru, where fishing started at the beginning of April, the fishing has also been good.

Here, a quota of 3.7 million tons was allocated for April to July and more than half of the quota has already been used.

This means that very large quantities of fishmeal and fish oil have been distributed on the world market, where the demand only started to take off in May with the usual increased demand from the Chinese fish farmers.

The natural result of this is that the prices of both fishmeal and fish oil have been under pressure, which in turn is reflected in declining raw material prices across the sand eel season. Nonetheless, the raw material price is still historically high.

During the first two weeks of May, the world market price of fishmeal reached a bottom level, from which it is expected to rise slightly.

Large sales of fish oil

Currently, large quantities of fish oil are being bought by traders for the purpose of resale.

This naturally pushes up the price and also reflects the expectation of increasing prices on the world market.

I therefore expect the price of fish oil to return to the price level of rapeseed oil, as it ought to do, since these two products can be directly substituted in the production of mixed feed.

In addition, we can hope that the dollar will adjust in keeping with the trend that we have already observed.

Finally, I wish all readers of 999 NEWS a good summer and hope that fishing will continue to be good for TripleNine's members.