Market turmoil and air freight trouble are hammering the salmon price down by ten percent

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Major ripple effects from the war in Ukraine.

“We have very little fish to sell, and have nothing to report on 3-6 kg. We have big fish, and that market has not been set yet. What we have sold for big fish is linked to Nasdaq, and we do not know yet,” says a fish farmer to SalmonBusiness.

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.

“We hear the prices for main sizes from 75 to 79 kroner (EUR 7.5-7.9). And the big fish, if you manage to push it into a market like China or Korea, then the price is 100 kroner (EUR 10).

New home
But average prices are falling sharply, from a level in the mid-80s last Friday.

“Fish from the Faroe Islands to Russia must find a new home. There are a couple of hundred tons weekly there. And 650 tons that were going to Ukraine must enter other markets. Then you have air freight problems and a lot of psychology. It’s a combination.”

Photo: Andreas Witzøe

“Chilean frozen fish that goes by sea with container ships has gone to Russia. There is a halt to new sales, but it has not affected the market in Europe significantly,” he says.

All of SalmonBusiness’ industrial sources point to a sharp fall in prices.

Cancellation
“Prices have been under pressure all week due to cancellation of flights. More fish are entering Europe, and there has been a turbulent atmosphere,” says a trader.

“The fresh fish race in Europe is going its own way,” he says, and sees prices around the mid-70s.

So do a number of other exporters SalmonBusiness has spoken to on Friday.

“We have sold at 10-12 kroner (EUR 1-1.2) in losses. Bloody losses. It has been worst for the big fish,” says one of them, pointing at the challenging air cargo markets.