Increasing shortage of big salmon pulls prices up

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New hike into the next week.

“Prices have risen quite a bit this week. But at the same time we meet some resistance. So customers are hesitant. They (the fish farmers – editor’s note) are talking about prices that will go up to five kroner (EUR 0.5) or more. We do not have customers who want to go up there,” said an exporter.

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.

“There has been less fish this week. But it grows well, especially in the north [of Norway]. Here in the south it is a bit hot. And in August, many processing factories close down, so they must have goods out before the holidays. There has been a surprisingly high volume. But that’s a good sign.”

Volumes
He presented to the following prices for the coming week:

  • 3-5 kg NOK ​​65 (EUR 6.3)
  • 5-6 kg NOK 67 (EUR 6.5)
  • 6+ kg NOK 72 (EUR 7.0)

According to export statistics from Statistics Norway and the Norwegian Seafood Council, Norway’s export volumes of salmon have averaged 26,000 tonnes in the last 5-6 weeks. That is seasonally very high, and reflects good growth conditions and feeding in the sea cages.

“It is surprising that the market has absorbed so much. There is less of the big fish, which then turns into “industrial fish”. And then there are a lot of 2-3 and 3-4 kg. There is a significant price gap from 3-4 to 5-6 kg. There is a wider spread in prices than normal,” said a trader.

Jump
There is no doubt that there will be a significant jump in the spot prices. Last Friday, the average price was around EUR 6. It will be much higher today.

“These are great days to be a fish farmer. There has been growing demand throughout the week, and then I hear it continues next week,” says a salesman at an integrated fish farming company.

“When I look at the calendar, I think next week will go well, but the following week there may be a sharp fall, but you should perhaps not write that,” he said. “In the last three or four weeks, we have received more demand from the UK, from those who normally buy from the Scots.”

“We now sell at:

  • 3-4 kg NOK 68 (EUR 6.6)
  • 4-5 kg ​​NOK 70-71 (EUR 6.8-6.9)
  • 5-6 kg NOK 74-76 (EUR 7.2-7.4)
  • 6+ kg NOK 77-78  (EUR 7.5-7.6)

“On the big salmon, we know there are some problems in China, only one airport is open. But the prices fantastic, there is nothing else to say,” he added.

HORECA
“I’m excited about when the Americans are starting to wake up. Primarily, Spain, France and the United States are taking away the volume. The HORECA market (Hotel, restaurant and catering – editor’s note) is recovering more and more. This week is an all time high for us to Italy and Spain, and there it is primarily HORECA customers we sell to,” he said.

“We receive weekly requests for contracts for the second half of the year. And we use to offer two kroner over Fish Pool (Fish Pool’s forward prices show NOK 59.41 (EUR 5.72) for the second half of 2021 – editor’s note)

A very high spot price level for large salmon is confirmed from several quarters.

“I’m not sure,” said a farmer, and referred to prices of NOK 70 (EUR 6.8) for 5-6 kg and NOK 75-80 (EUR 7.3-7.8) for 6+ kg. “Not confirmed,” he added.

“71/72/76”, wrote an exporter in an SMS to SalmonBusiness, with reference to the most traded weight classes three to six kilos.