Logistics are being stretched in a hectic market.
“It looks like there’s going to be a downward adjustment. We’ll see where it ends up. Tough week. Logistics make everything more expensive. It’s a struggle to make everything fit together,” an exporter told SalmonBusiness.
He refers to salmon prices (to farmers) of NOK 62, 64, and 68 ($5.89/€5.27, $6.08/€5.44, $6.46/€5.78) for the most traded weight classes, ranging from three to six kilograms.
“The 2-3 kg class has been hit hard, dropping well below 50 NOK ($4.75/€4.26). There’s some lice influencing things quite a bit.”
Strong Growth
He notices strong growth in the sea. The Norwegian salmon biomass at the end of August was 3.2 percent higher than the level 12 months earlier.
“The slaughterhouses are working at full speed. There’s a lot of fish. But I hope we can reduce the harvest volumes a bit now because logistics are a real headache. It complicates everything,” he explains.
“The price is down about 4-5 NOK ($0.38-$0.48/€0.34-€0.43). And it has to be, because this week hasn’t gone well. A lot remains unsold.”
A significant amount of salmon is currently leaving the country. Last week, 38,407 tonnes of salmon (converted to round weight) were exported, which was the highest figure for the year. This is ten percent more than the same week last year, according to export statistics from the Norwegian Seafood Council.
Pressure
“There was enormous pressure this week, to say the least,” says another exporter, confirming the price levels.
“Yes, we’ve realized lower prices now. Both overseas and Europe are under heavy pressure. Plus, sharply rising transport costs due to high volumes. Are we at an all-time high this week?” he asks rhetorically.
“I’ve bought a couple of loads at: 3-4 kg for NOK 63 ($5.98/€5.36), 4-5 kg for NOK 65 ($6.18/€5.53), and 5-6 kg for NOK 70 ($6.65/€5.95),” says a buyer.
“There’s been a huge drop for the smaller fish. We’re talking 2-3 kg at NOK 46-47 ($4.37-$4.46/€3.91-€4.00), 3-4 kg at NOK 62 ($5.89/€5.27), and 4-5 kg likely at NOK 65 ($6.18/€5.53), and 5-6 kg at NOK 70 ($6.65/€5.95).
There’s pressure on everything right now, really,” another buyer confirms to SalmonBusiness.
SalmonBusiness gathers spot prices for salmon every Friday after lunch, tracking fish to be delivered the following week. This process involves contacting multiple entities in the value chain, including farmers, exporters, and importers. At least five independent sources are consulted, though they may not always be publicly disclosed.
