Impact of Covid-19 Outbreak on Fishmeal Market-
The Covid-19 pandemic has disrupted the global supply chain of the livestock industry and interrupted the entire feed input value chain, from raw material procurement to manufacturing, packaging, and distribution. With several manufacturers having the required raw material and end-product stock, the impact does not seem to be high for a short duration of time. However, if the pandemic prolongs and trade restrictions are extended, the impact is expected to rise. As of the beginning of May 2020, there were more than four million confirmed cases of Covid-19 globally, and more than 284 thousand deaths due to Covid-19.
Covid-19 pandemic is expected to have a major impact on the supply chain and value chain of the global fishmeal market. In the current market scenario, the demand for livestock feed, including fishmeal, is stable. However, the supply of feed is declining due to the nationwide lockdown and trade restrictions imposed by several countries. China, India, and Romania are amongst the major countries that have ordered partial/complete closure of their international ports and borders to curb the spread of coronavirus. This has led to a disruption in the supply of raw materials, containers & vessels, and other micro-ingredients. Complete or partial shutdown of the fish processing industries has resulted in the lack of raw material availability for the fishmeal producers, thus, negatively impacting the supply of fishmeal across the globe. Fishmeal sources such as salmon & trout, marine fish, crustaceans, and tilapia amongst others are witnessing a declining trajectory in their supply owing to the restricted fishing activity and high cost of growing these species amidst declining demand. Movement of fishers has been restricted to maintain their working conditions and safety. Fishing communities are expected to become hotspots for Covid-19, owing to their migratory behavior and cross-border movements.
MRFR’s Covid-19 analysis tool predicts the potential challenges being faced by the developing countries while sustaining their economy amidst the global pandemic. In respect to the fishmeal market, developing countries are facing storage and infrastructure challenges due to the unavailability of proper storage infrastructure, such as cold storage, logistics constraints, and availability of labour. Border restrictions have limited the movement of raw material across international borders, resulting in reduced fishing activity in developing countries of Asia, Africa, and Europe. This, in turn has impacted the fishmeal market of countries, such as the UK and Ireland, that rely heavily on the export markets.
According to the Covid-19 risk analysis conducted by MRFR, it has included several Covid-19 analysis pointers in its in-depth global reports. The Covid-19 impact analysis platform provided by MRFR includes the impact of Covid-19 on businesses, several industries, logistics, and financial/economic impacts amongst other such parameters.