Increasing supply of large salmon sends the price down

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Spot price under pressure after last week’s peak.

According to Akvafakta, Norwegian fish feed sales are up 17 per cent this year compared to the same time last year. This implies that there are good growth conditions in the sea – and increased access to fish in harvesting weights. Rising supply, with five days of harvesting next week, dampens the salmon price from the levels achieved last Friday. 

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 in print. We vary the sources we use and do not use the same sources each time.

“There are expectations that 6+ will be lower than 4-5 and 5-6 (kilograms). There is great overpricing at the big ones,” says an exporter to SalmonBusiness.

“It is the big fish that has pulled up a lot, but it seems that there is good access to it now,” he says, adding: “I think the willingness to pay is weaker than before.”

The fish buyers are reluctant and expect further price depreciation.

“It remains a lot of unsold fish, of course,” says a purchaser at a processing company. “Everyone knows that there will be a lot of fish next week. So it’s going to be a lot down,” he says about the salmon price.

SalmonBusiness’ industrial sources outline the following farm gate price level for fish to be delivered next week:

  • 3-4 kilograms NOK 61-63 (€6.2-6.4)
  • 4-5 kilograms NOK 63-65 (€6.4-6.6)
  • 5-6 kilograms NOK 65-67 (€6.6-6.8)

“We ended last week at NOK 68 on average. Next week I think we will land at NOK 60-62 on average,” says a trader.

“But the market is uncertain next week. The customers are fed up, really. They say they don’t want fish – they must first sell the expensive fish we sold them last week.”