Anyone seen a recent price increase in fish food?

From UBS�s � Art Cashin

.... "Bob Hardy, had an intriguing observation yesterday on his blog
�THEGEOSTRAT.com�. For many years, Bob was a specialist on the NYSE floor. He tended to concentrate on foreign
companies which then gave him key contacts around the globe. Bob was often the �go to guy� on the floor when geopolitical
events popped up.
In his blog on Wednesday, he made the following observation:
The earthquake that recently devastated Chile destroyed all of its fishmeal plants driving prices for this
commodity to an all time high. Chile had been the world�s second largest exporter of fishmeal, which is used to
feed fish, pigs and poultry. China has been rapidly expanding aquaculture to respond to the rising protein
demand by its people. The FT reports that 40 percent of human fish consumption comes from aquaculture. Prices
for fishmeal are up 85 percent this year.
Herring, sardines, and anchovies are the primary ingredients in fishmeal. There is now concern that the current El
Ni�o weather pattern will reduce the catch in Peru, the world�s largest exporter of fishmeal. The rise in price has
supported the price for soybeans, the alternative animal feed. The U.S. is the largest producer of soybeans and
Brazil is the largest exporter of soy products. These two agricultural powerhouses will benefit from the large
increases in worldwide food prices we foresee. "



Last edited by ewest; 04/29/10 10:11 AM.