Investment banker expects tight salmon market for years to come

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Increased demand from supermarket chains as a result of Covid-19 may have permanently changed the market, according to analyst.

“Since the global reopening gradually began in April, demand for salmon has been largely higher than the levels from 2019 and considerably higher than last year,” Kepler Cheuvreux analyst Christian Nordby told the publication Finansavisen.

“Demand may also be permanently positively affected by Covid-19 due to increased demand from the grocery store,” he added.

Nordby’s main hypothesis is that in the short term, the fish farmers are unlikely to be able to produce enough salmon to meet higher demand. The result is likely to be several years of salmon prices above EUR 6 a kilo, he predicted.

According to the analyst, Grieg Seafood is “the most potent stock at high salmon prices”. At the other end of the scale is SalMar and Bakkafrost, which have lower production costs.