There's an Anchovy Shortage. That's a Pricey Problem

Anchovies aren't glamorous, but they're one of the more quietly consequential creatures in the global food chain. Bloomberg Opinion's Javier Blas reports that worldwide anchovy output has fallen by up to 40% in a year. That matters because anchovies are a core ingredient in fishmeal, the feed that underpins a $500 billion aquaculture industry producing salmon, shrimp, seabass, oysters, and more. As a result, fishmeal prices are up roughly 80% year-over-year and hit a record high in June, with future increases expected. That's bad news if farmed salmon is a regular part of your diet.

The squeeze is centered on Peru, whose annual catch typically underpins about a fifth of the global fishmeal supply. This year's powerful El Niño—which is months away from ending—has warmed Pacific waters and hammered anchovy stocks, prompting Lima to impose what has turned into an open-ended anchovy fishing ban. With fishmeal production down 30% to 40%, Blas writes, farmed fish producers will likely cut output, pushing seafood prices higher over the next year or two; he predicts salmon prices could jump another 20% to 25% by 2027. For a deeper look at how a small fish in Peru can ripple through supermarket prices worldwide, read the full piece.