Ocean Supreme MD: “I see a realistic annual growth of 5-10 percent”

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Ocean Supreme MD, Botholf Stolt-Nielsen, on his belief that economic growth and improved distribution and logistic provides the basis for growth in the world’s salmon market.

“Even if there are great opportunities to produce more, it is still impossible due to politicians and regulations,” Stolt-Nielsen told SalmonBusiness.com.

“The questions is how the growth can be realised. There are opportunities in Alaska, USA and Canada, he added.

People need protein
Stolt-Nielsen is very proud that salmon demand will go up, eyeing up attention to payment ability and transport.

“Most people get richer, and we are getting better and more efficient distribution channels.”

“The industry is so regulated that we are rather seeing an underproduction compared to the growth potential in the market”, the exporter said..

Potential
The last few weeks there have been big fluctuations in salmon prices. At the beginning of May, Salmon Business reported on how prices went up to EUR 8.5 per kilo, as well as price cuts and a 30 percent decline.

“That’s how it is, and I have to adhere to it. I think consumption will increase in the next few years, but it is clear that the pricing up to EUR 8.5 per kilo seems to affect the demand in some segments. It may not happen the exact week (the price is EUR 8.5 per kilo) – there may be delays, because the market is uncertain and does not dare to plan ahead. They do fewer campaigns, as a result of uncertainty” he added.

“I do not foresee the possibility of overproduction of salmon. Nutrition is so regulated that it is also talked that growth is not able to follow the growth potential in the market, so the exporter wins.

High salmon prices
Even so, Stolt-Nielsen currently operates in Asia and is a specialist in the air cargo market. He is now focused an improving trades relationship between Norway and Chile, while other producer countries such as Chile, Scotland, Faroe Islands, Tazmania and Canada compete for market shares.”

“There is little growth in production in producing countries other than Norway. Both Chile, Scotland and the Faroe Islands had a relatively stable quantity, compared to last year.

“My view is that we will have high salmon prices for years, as there is little global production growth,” he says.

So far this year, however, the air cargo market has delivered lower volume than last year.

“If one looks at March, April and May, there has been a decline of 13-14 percent. That’s because we’ve had competition from more producer countries’ he added.