Peru Increases Squid Quota to Release Supply; Strong Chinese Demand Supports September Price Rise

On August 25, Peru’s Ministry of Production (Produce) officially announced the resumption of fishing for jumbo squid (Dosidicus gigas) and an additional 82,000 metric tons of fishing quota (valid until December 31). With this adjustment, Peru’s total annual squid fishing quota has risen to 504,000 metric tons, supplementing supply for global buyers. As Peru’s largest squid purchaser, China’s strong demand, coupled with declining domestic inventory, has driven squid prices to start an upward trend in September.

1. Peru: Quota Increase + Fishing Resumption, Releasing Supply Increment

• Core Action: Resume jumbo squid fishing; after adding 82,000 metric tons of quota, the total annual fishing quota for 2025 reaches 504,000 metric tons (valid until the end of the year), injecting new supply into the global market.

• Purpose: Respond to the demand of global buyers, balance the development of squid resources and market supply, and ease the previous potential supply shortage expectations.

2. China: Remains the Largest Buyer, with Both Import Volume and Value Surging

• Dominant Procurement in H1: From January to June 2025, Peru exported 183,000 metric tons of squid raw materials (HS Code 030743), of which 104,000 metric tons were exported to China, accounting for 57.18%. China remains the core purchasing country.

• Import Boom in July: According to China Customs data, China’s imports of squid and octopus products in July reached 77,500 metric tons (YoY +106%), with an import value of USD 279 million (YoY +148%); Peru exported 42,200 metric tons (valued at USD 147 million) to China in the same month, continuing to lead in supply.

3. Domestic Prices: Stabilized at Low Levels in August, Slight Rise in Early September

• August Market Trend: Affected by Peru’s additional quota, domestic squid wholesale prices remained at a low level, reducing the procurement cost for downstream enterprises.

• September Turning Point: In Week 36 (September 1-7), the port transaction price of Peruvian jumbo squid (1-2kg specification) reached 16,400 RMB/ton, an increase of 400 RMB/ton compared with the end of August, marking the first rebound after prices hit bottom.

4. Ocean-Going Fishing Supplements Supply; Declining Inventory Boosts September Market

• China’s Ocean-Going Fishing Efforts: Since November 2024, multiple Chinese ocean-going fishing vessels have operated 30 nautical miles outside Peru’s Exclusive Economic Zone (EEZ), with an average yield of about 1,250 metric tons per vessel, supplementing domestic raw material supply.

• Key Support: The Zhoushan International Agricultural Trade Center (ZZIATC) pointed out that current domestic squid inventory is continuously declining. Although Peru’s additional quota has suppressed prices in the short term, supported by strong demand, squid prices are likely to rise further in September.