Peru Cuts Annual Squid Quota to 479,000 Tons, H2 Supply Sharply Drops, Global Squid Market Tightens
- Ricardo
- May 22
- 3 min read
On May 20, 2026, Peru's Ministry of Production (PRODUCE) officially issued new regulations. The maximum allowable catch total (LMCTP) of jumbo flying squid (Dosidicus gigas) was set at 479,311 tons. The country abandoned the half-year quota model for the first time and adopted strict annual total catch control. The remaining quota for the second half of the year shrinks remarkably, marking a pivotal turning point for global squid supply.
1. Core Policy: Annual Quota Implemented, Only 116,000 Tons Left in H2
Total annual quota: 479,311 tons, effective from January 1 to December 31 with full-cycle supervision.
Remaining H2 quota: Only 116,322 tons available for artisanal fishing vessels from May 20 to December 31, accounting for roughly 24% of the annual volume.
Fishing progress alert: Cumulative landed volume exceeded 340,000 tons by mid-May, nearly 70% of the full-year quota. Rapid consumption in the first five months greatly limits supply in the second half.
Strict restraint mechanism: Fishing will be suspended immediately once the annual or phased quota is reached, or upon suspension suggestions from the Peruvian Marine Institute (IMARPE). Actual fishing operations may end ahead of schedule.
2. Market Background: Rising Global Reliance, Peru Becomes Major Supply Hub
Peru ranks among the world’s top suppliers of raw squid and serves as the primary material source for China’s distant-water squid fishing industry.
After the closure of Argentina’s squid fishing season, numerous ocean-going vessels shifted operations to the Southeast Pacific. Weak fishing conditions in the Southwest Atlantic further boosted dependence on Peruvian squid resources.
China also tightened its high-sea squid quota, pushing global raw material supply into a tight balance state.
3. Domestic Market Response: Prices Stay Firm, Traders Manage Stocks Cautiously
Prices of mainstream Peruvian squid products including fillets and medium whole squid have remained at high levels since May.
Traders hold back low-price shipments and show growing reluctance to sell stocks.
Processing factories adopt prudent procurement strategies, restock only for rigid demand and strictly control inventory risks.
The main market concern lies in insufficient new raw material supply in the second half rather than spot shortage.
4. Industry Indication: Long-term Strict Resource Management, Sustainability Takes Priority
The policy adjustment signals normalized and long-term strict control over Peruvian squid resources.
Management mode shifts from periodic quota restriction to annual total volume control with intensified supervision.
The market will become far more sensitive to quota adjustments and sustainable fishing practices.
5. Impacts and Suggestions for Chinese Enterprises
Major Impacts
Raw material purchasing costs are poised to rise steadily in H2, with widening price gaps among different sizes. Small and medium-sized specifications will face more severe shortage.
Inventory turnover efficiency and raw material reservation capability become core competitive strengths of enterprises.
Practical Advice
Control purchasing pace, replenish goods based on actual demand and avoid bulk buying at high prices. Maintain flexible capital and stock turnover.
Prioritize securing supplies of small and medium-sized squid, and reduce risks of unsold large-sized products.
Keep close track of shipment volumes, port inventory and resource assessment updates released by IMARPE.
Expand supply channels and explore supplementary resources from the Southwest Atlantic and Indian Ocean to diversify operational risks.
Summary
Tightened annual quota and plummeting second-half supply in Peru, coupled with growing global demand reliance, make squid prices prone to gain but hard to stabilize. A tight supply-demand balance will dominate the market trend for the rest of the year.
Comments