Navigating Supply Chain Concerns
Ellen Schutt, Managing Director, Global Organization for EPA and DHA Omega-3s (GOED)On a macro-economic level, the ongoing uncertainty in the market due to the U.S. tariffs is the most pressing issue across the natural products industry. As a global organization, GOED has heard concerns from many of our international members regarding the situation and the challenges with making business decisions in a constantly changing landscape.
For the omega-3 category, the biggest challenge is connected to the fish oil supply chain and the natural variability in omega-3 resources. The Peruvian anchovy fishery, which supplies the majority of the fish oil the omega-3 supplement industry uses, is subject to fluctuations in the biomass and subsequent quotas during their two annual fishing seasons, and the amount of EPA and DHA—as well as the ratio of EPA to DHA—in the fish also varies from one harvest to the next.
The important takeaway here—and what GOED would like to see the industry recognize to ensure its long-term success—is that we need to include a variety of EPA and DHA sources as part of the solution. This includes non-fish sources like algae, krill or calanus, but also other fish oil sources like sardine oil or tuna oil, which may have lower EPA and DHA content but which still provide a quality source for the industry. Thinking too short term and relying on only one fishery is a concern, and we hope to see attitudes change. The good news is, consumer demand continues to grow, and having a diverse offering of sources in a brand’s product line to meet this demand would ensure the ongoing health and continued growth of the category.
