“Exporters are desperate”: Coronavirus turmoil brings in new drop in salmon prices

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Downturn in prices because of fast-growing virus. “It’s just a completely dead market”.

“It has been a terribly difficult week, and it is difficult in the market as it stops in large parts of it due to corona fear,” said an exporter to SalmonBusiness.

He believes the prices last week were too high and therefore customers would not buy.

Facts

Every Friday after lunch, SalmonBusiness report spot prices for salmon. These are fish to be delivered the following week. We contact several links in the value chain, including farmers, exporters and importers, and always have at least five independent sources, although not all sources are necessarily displayed. We vary the sources we use and do not use the same sources each time.

“Then came the coronavirus and it gives a double effect. Ten kroner (EUR 1) up last week was totally meaningless. You can deduct it and maybe half a euro on average,” he added.

According to the exporter, a lot of big fish are being produced, which is not easy to sell right now.

“If it is to be sold to Europe, it will go down in price. I can say that 6+ is lower than 3-4,” he said.

The industry source refered to the following farmgate prices for salmon to be delivered the coming week

  • 3-5 kg ​​NOK 63 (EUR 6.3)
  • 5-6 kg NOK 61 (EUR 6.1)
  • 6+ kg NOK 56 (EUR 5.6)

“Exporters are desperate. We can’t go on like this. Customers will not say price, and there is a lot of sincerity. There is talk in the corridors it may be lower, but how much is difficult to say with certainty,” he concluded.

An employee of a listed salmon farmer also confirmed the decline.

“I have heard that there is a drop due to coronavirus,” he said because nothing is being sent by plane. The employee has a cold but added “it’s not the coronavirus I’m affected by”.

Another salmon farmer reported the drop, as many price sources did, but outlined a slightly different outcome.

“3-6 seems to end at about 70 (EUR 7). 6+ at 68-69 (EUR 6.8-6.9). Although coronavirus is affecting, several markets are very strong. Especially the United States on big fish. A weak kroner also helps,” he wrote in an SMS to SalmonBusiness.

An exporter right after lunch said that no one knows at the moment if there will be a decline.

“It will be a cleanup, we know more in a few hours. The big integrated ones, of course, wants 70+, the truth is between 60 and 67. We are sitting at the fence waiting for the market to wake up, but not because there is no fish in the market. It’s just a completely dead market,” he added

Another exporter is also waiting.

“We have not bought a kilo, so we dare not say anything. We simply have no clue,” he said at 13.30 on Friday afternoon.