New fall sends salmon price to its lowest level in five years

News
1133

Two months before Christmas Eve, salmon is being sold at prices well below EUR 4 per kilo.

“It will be tough now for a while ahead. There stocks are almost full, and our customers have no more money to freeze,” said a trader. “Europe is closing down. Wave number two is much worse than wave number one. The focus now is to be able to get rid of the fish. That’s what it’s about now.”

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.

“It is the lowest price we have had since 2015,” he pointed out.

“There are several factors that come into play. There is also a credit crunch here. And Chilean fish is being offered at a dollar lower price. Now the market has full control. There are 100-150 trucks in line to unload at Morpol,” he said.

Shutdown
Several sources point to challenges in Europe’s largest purchaser and processor of salmon, Poland.

“There are restrictions on Poland, with massive closure of restaurants. They have turned the national football field in Warsaw into a corona hospital,” said a fish importer.

“I do not know how bad it is, but it’s bad. People shiver in their pants,” he said.

At the same time, an increased supply of fish is expected.

“Now there is MAB (maximum allow biomass – ed. note) harvesting next week. There is no resting step here now. I’m not sure if next week will be that good either. It looks scary,” said an exporter.

Is the Christmas shopping put on hold?

“No, I wouldn’t say that. It’s probably getting started again. It will strengthen a little. Several farmers say they want to postpone harvesting over to the new year. But if it becomes so difficult that they push fish over to 2021, it will be tough in the first quarter as well.”

Patience
“It is tough, and it applies to most fish sales at the moment,” he said and added that his company also sells both cod and haddock. “So you probably have to be patient.”

“It probably ends up under 40 kroner (EUR 3.7) for most, even the larger sizes.”

SalmonBusiness’ five industrial sources refer to the following farmgate prices for salmon to be delivered in the coming week:

  • 3-4 kg NOK 36-39 (EUR 3.3-3.6)
  • 4-5 kg NOK ​​37-40 (EUR 3.4-3.7)
  • 5 + kg NOK 39-42 (EUR 3.6-3.9)