Fishmeal prices from  Peru have firmed up and exporters are not ruling out further increases as the first anchovy fishing season of the year yields low catches.

Hampered by warmer sea temperatures linked to the  possible presence of El Nino, as well as  mini-bans  due to juvenile levels, catches have so far not even reached a third of the total allowable catch (TAC) for the season, producers told  Undercurrent News.

According to a large Peruvian producer, prices out of Peru are now at  $1,800 per metric ton, FOB, for super prime fishmeal, a considerable increase from the  $1,600/t &ndash $1,620/t level reported at end of April.

Another large producer told  Undercurrent News  prices are close to  $1,800/t, while two Peruvian producers said bids are at around  $1,750/t.

All of these are  higher than expected &mdash producers in April had said they expected prices to  be in the range of $1,600 to $1,700 for this year' s season.

Chile' s fishmeal prices are also going up as a consequence of the increase in  Peru.

Chilean firm Blumar Seafoods is  selling super prime fishmeal  at $1,700/t  &mdash an increase of $50-70 per ton on recent weeks, Eduardo Goycoolea, Blumar' s sales and marketing director, told  Undercurrent  earlier this week.

The four Peruvian producers canvassed by  Undercurrent  all attributed the price hike to a poor  anchovy season. They estimated that only 25% to 31% of  the first anchovy season' s  TAC of 2.53 million metric tons  has been caught to date.

The slow catches mean stocks in Peru are low, and sales are slow due to the little supply, said producers.

As  the anchovy biomass moves to the southern part of Peru,  near the shore, where catches are not allowed for Peru' s industrial fleet, there have been  lower  anchovy catches.

Also, temporary fisheries closures &mdash mini-bans &mdash   taking place since May  for the high presence of juveniles  are hitting Peruvian anchovy landings.

" The  upward trend is linked to poor catches of the fishing season in Peru and some market players' expectations of not catching all quota due to the possible presence of El Nino," a fishmeal player  said.

On May 8, NOOA' s climate prediction center  increased its forecast' risk of El Nino this year to 65%.

In late  April, Peruvian producers  told  Undercurrent  demand in China was looking firm, but weather conditions were still uncertain.

" Chinese buyers are waiting for weather conditions to  improve to see the real demand, they also are not in a rush to buy due to the current stock as well as the pending arrivals coming to Chinese ports. The real demand would come during June," a fishmeal  producer said at the time.

Pacific Andes is selling a 17.1% stake in Tasmanian salmon farmer Tassal Group on the heels of a 49% profit drop  in the first half of its current financial year, which ended on Wednesday.

UBS, the broker handling the deal, contacted fund managers after market close on Thursday, offering 25 million shares at $3.65 each, reports  Hot Copper.

Undercurrent News  was unable to reach  Pacific Andes or Tassal to clarify how much of the shares had been sold as of Thursday morning.

The shares were being sold at an 11.2% discount to their last close of $4.11 and a 9.7%  discount to the 5-day volume-weighted average priced.

Pacific Andes will be left holding about a 5.5% stake in the Tasmanian salmon grower and has agreed not to sell any more for 180 days.

Changing times for Pacific Andes

The company' s 49% profit drop comes with a 3.4% drop in sales revenue for the first half of its fiscal year although the company' s consolidated earnings increased by two thirds year on year. It said this week it plans to continue to consolidate its operations.

Consolidation of  production lines is a major part of that plan, while improving productivity and maintaining customer relationships.

Sources recently told  Undercurrent  Pacific Andes will have to demolish its plant in Qingdao, considered the largest double frozen pollock plant in the world, due to government planning projects.

The move comes as some expect Pacific Andes to exit the Russian pollock business altogether, although the company itself has said it will keep buying pollock on the spot market, depending on prices