Oversupply of heavy salmon triggers price fall

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Growing worries on the demand side leads to a new price reduction.

The heaviest salmon is normally priced at a premium against other weight classes. But holiday closures in East Asia and corona-driven reductions in purchases in the US and southern Europe now ensure a flat price for all fish over five kilos.

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.

“There is a «5 + price» now in the market. It is not abnormal for the season. The aviation market stops. The corona plays a big role. Spain, France and Italy limit their intake of large salmon. No one is interested in paying more for a 5-6 than a 6-7,” an exporter explained to SalmonBusiness.

New wave
This means that salmon prices are sent down again – to the same level as two weeks ago. Several market participants point to the new wave of corona as a growing problem in sales for salmon.

“Customers say they sell much less. They are desperate because they do not get rid of their products either. And then came the second shutdown.”

“There is not much you can sell today. There has been an accumulation of fish throughout the week,” he said, and added that there have been large losses for exporters this week.

Liquidity
The descriptions of subdued demand are like an echo among the sources.

“There are many who struggle to sell today. It is generally a weaker market now. Quite simply,” said a trader.

“Big problems with credit facilities are being talked about. If you have liquidity, you get cheap fish,» wrote an importer in an SMS to SalmonBusiness.

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

  • 3-4 kg NOK 38-41 (EUR 3.5-3.8)
  • 4-5 kg ​​NOK 40-42 (EUR 3.7-3.9)
  • 5+ kg NOK 42-44 (EUR 3.9-4.1)