New setback as salmon prices fall closer to break-even levels

News
1091

Market characterized by abundant supply, especially of large fish.

“It was stable until today,” said a trader about the salmon price. “But the problem is that the market has [almost] no use [for the fish].”

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.

A reduced supply of fish was expected, as a result of the extreme weather, called “Frank”, which has ravaged Norway’s northernmost parts. But so far there is no price impact from the hurricane.

“No. And then there are a lot of big fish. It is down a good deal to 6+,” the exporter added.

Weakening
He saw a price weakening, with NOK 2-3 (EUR 0.2-0.3), for the most traded weight classes.

“At 3-6 kg it is 44 kroner (EUR 4.3) in the south [of Norway]. 6-7 kg goes for 43 kroner (EUR 4.2) in Oslo, which is equivalent to 41 kroner (EUR 4.0) in the north,” he said about the prices.

“It is a range from 41 (EUR 4.0) to 44 kroner (EUR 4.3),” said another. “It looks like 6+ is tougher than 3-5.”

This means a new week with prices around the break-even level for the majority of fish farmers.

Discount
“I have heard much of the same as I heard last Friday,” said an importer. “But the big fish goes with a discount here, there is no doubt about that.”

Others talk about even lower prices.

“I bought this week for 40 kroner FCA fish farmer (EUR 3.9),” said an exporter who specializes in airborne big salmon.

“We are aiming for NOK 37 for purchases of large fish,” he said hopefully.

When asked if the extreme weather “Frank” has had any effect on the price, his answer is short: “No.”