Meelis Vetevool, the chairman of salmon processor M.V.Wool’s supervisory board, has predicted that the pressure on salmon prices “could be eased in July or August.”
Discussing how the price of raw salmon has rise by 84 percent over the past year, Vetevool told News.ERR that the cost of the fish is unlikely to drop before the second half of summer this year.
Citing how the rising cost has been driven by the ongoing impact of the Covid pandemic on production, Vetevool argued that “farms in Scotland and Chile are producing less fish than is needed.” Adding that “Norwegian companies are exporting to the Americas and Asia, which is why the price has spiked.”
However, looking forward, he expects the sky high prices to come down a bit around July or August, as “the next generation will be ready by summer,” alleviating the pressure on the market.
Read also: Minor movements for salmon prices, which are still trading around record levels
“The markets are bouncing back and demand for fish is high all over the world. There is simply not enough of it available and Norway cannot cater to global demand alone,” Vetevool said.
While the rising prices have been beneficial for many companies, the M.V.Wool executive claimed that it had actually forced his company to cut back on production due to certain areas being unable to afford the current fish price.
“Estonians cannot afford to eat their fill of salmon at these prices, and the same goes for the rest of Europe,” Vetevool argued, suggesting that demand might start to slump in response to the rise in cost.
The concerns come as countries across Europe and the West face a cost of living crisis amid global instability in the wake of the conflict between Russia and Ukraine.
Read also: UK citizens reduce fish consumption amid growing cost of living crisis
Data released by market researcher NielsenIQ showed that concerns about the cost of living had resulted in shoppers cutting back on fish consumption, with volume sales of meat, fish and poultry falling 13 percent in the four weeks to April 23 year-on-year.
