Poor weather creating logistical headaches, pushing up prices

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Logistics trouble from a storm in northern Norway is a X-factor in price determination.

“I’d say it’s a small upturn. For three to six kilos I would say it is 55, 56 and 57 kroner (EUR 5.5, 5.6, 5.7),” says a sales manager at a fish farming company in Western Norway to SalmonBusiness.

“The [bad] weather in Northern Norway is clearly a factor in this. And there is more craving for air freight [overseas markets] than it is in Europe,” he adds.

However, several exporters see significantly lower prices than this.

Facts

Every Friday after lunch, SalmonBusiness reports spot prices for salmon. These are fish to be delivered the following week. Here we contact several links in the value chain, including farmers, exporters and importers. We always have at least five independent sources, although not all sources necessarily appear on print. We vary the sources we use and do not use the same sources each time.

“Our customers are offered € 5.75 for 3-4 and € 5.85 for 4+. It is from the big [farmers], customs-cleared price in Europe. This implies that the customer buys at NOK 52 for 3-4 and NOK 53 for 4+ in the north. Then an exporter has 0.80 kroner in comission.”

“It’s the same price as this week. 6+ has been better paid, on flights to China,” he adds.

“The market does not have major changes. There has been some complications with the weather, but the fish is there. There is good access to fish next week. There is no shortage of fish, so it should be fairly stable,” says another exporter.

“Last Friday we were at NOK 52-53 (€ 5.2-5.3) for 3-5 and NOK 54-55 (€5.4-5.5) for 5+.”

Another, and larger exporter, thinks the prices mentioned are too low to buy any fish.

“It’s too low, I’m afraid. 55, 56 and 57 kroner is probably closer to reality.”

He gets support from a sales manager at a mid-Norwegian fish farming company.

“The market is starting to demand more than we have to push. The weather; I do not know if it has the great effect, more psychology than practical. But it helps us that it’s rather a truck less than five too much.”

“We are so short on fish that we are a bit frail today. So we have raised the prices up to 60 kroner (€6). That’s five kroner. But in practice 3-4 kroner. There is no doubt that there is a rise,” he says.