Bakkafrost sales teams have in recent years achieved substantially higher salmon prices than their Norwegian competitors. But next year’s long-term agreements could be lower than what we’ve seen this year.
The average price of salmon so far in 2017 has been a comfortable €6.35per kilogram (as delivered to Oslo). For 2018, a lower price seems likely, based, at least, on contracts now being discussed in the market.
Bakkafrost is now working to secure fixed-price contracts for the sale of salmon next year. For the moment, prices lie around NOK 58 (€6), managing director, Regin Jacbobsen, was quoted as saying by TDN Finans at today’s quarterly report presentation.
“The market goes up and down. That’s why we have long-term contracts, and they’re based on forward prices. We’ve have, indeed, had a very high price for a while, and now it’s coming down a little. Whether one agrees contracts now or next quarter is constantly evaluated,” Jacobsen told TDN Finans after the presentation.
When it comes to production costs for salmon, the Bakkafrost boss said he believes they’re on their way down in the coming quarter.
“The 2016 generation looks like it’ll have lower costs than the 2015 generation, so costs will come down over the next quarters.”