Nordea Markets predicts a new super cycle for salmon

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Demand is growing faster than supply.

“In the future, there is an expectation that the supply side will grow relatively modestly by two to four percent per year, while demand will grow considerably more than that. We therefore believe that we are facing a new super cycle, with a very modest supply side and strong demand.”

This is what Herman Aleksander Dahl, salmon analyst at Nordea Markets, told Finansavisen .

“On the other hand, it can be argued that salmon prices will take a hit in the short term, both because a lot of fish will be taken from the sea, but also because consumers are being pressured from all sides with high prices at the petrol pump and increased interest rates. Despite this, the long-term picture still looks very strong,” Dahl said.

Source: Infront

The seafood index at Oslo Børs has had a return of 945 per cent over the past decade, which corresponds to an annualized return of 26.4 per cent. In comparison, Oslo Børs has given a return of 194.3 per cent in the same period, which “only” corresponds to an annualized return of 11.4 per cent.

As a result, seafood shares have more than increased tenfold in this period, and the shares included in the index now have a market value of approximately NOK 339 billion (€34 billion).