Freezing winter weather tightens the supply and gives a price boost

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Reduced harvesting activity sends the salmon prices straight up.

“NOK 50+ (EUR 4.9). Ice-cold, postponed harvesting, MAB (maximum allowed biomass) harvesting last week,” said a trader, and added: “And it will crash again if only one of the big ones has some fish.”

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.

“Around 51-53 kroner (EUR 5.0-5.2) at 3-6 kg, but 6+ about 47 kroner (EUR 4.6). Recoil on the decline will probably come, because market prices for finished goods are not a basis of more than 50 kroner (EUR 4.9) for raw materials,” said another trader to SalmonBusiness.

Cold
When considering that the salmon price last Friday was around EUR 4/kg, it implies a pretty sharp rise.

“I think it’s too high. I really think the price will settle at 47-48 kroner (EUR 4.6-4.7). 50-52 kroner (EUR 4.9-5.1) is what they try, the integrated ones,” said an importer.

“We will see if there is a hold in the upturn. They say there should be less fish, since it is so cold. I hope there are 20-30 percent less fish next week,” he added.

“3-6 kg at 47 kroner (EUR 4.6), possibly it will be even more up. 6+ is 46 kroner (EUR 4.5),” said a fish farmer, before he added: “I’ve only sold one truck.”

Rising
“We must pay probably 49 kroner (EUR 4.8) to the farmer for 3-6 kg. 6+ is a little lower, but that means that there are no air cargo orders going out next week. It rises 5-6 kroner (EUR 0.5-0.6),” said an exporter.

“I am surprised. The market is not that strong. But there were not as much fish this week,” he said.

Prices have risen on increased demand from Asian buyers.

“Chinese New Year is next week, until the 15th, so it is clear that there will be no air cargo. But next week, the big fish must enter the European market again,” the exporter pointed out.