Fishmeal production in marketing year (MY) 2017/2018 (January-December 2018) is forecast at 705,000 metric tons (MT), three percent lower than the estimated production in the previous year. This decrease is mainly due to lower catch for reduction. Overfishing will continue to threaten the industry going forward. Peru continues to export the majority of the fishmeal it produces, the bulk of it going to China. Warmer water temperatures caused by El Niño will continue to result in lower fish oil extraction rates. Post forecasts soybean meal imports in MY 2017/2018 (January-December 2018) are estimated at 1.3 MMT, up two percent compared to the previous year, linked to increased corn imports for animal feed. Soybean oil will continue to increase with economic growth.