Salmon price slips as supply outpaces demand

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Salmon prices always fall sharply towards the end of July. This year is no exception.

A heavy increase in the supply of fish, coupled with reduced demand, sends the salmon price into a seasonally deep fall.

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.

“Today there is pressure. Without a doubt,” said a salesman at a fish farming company to SalmonBusiness. “It started on Tuesday and Wednesday. And so it has just continued. We are down 10-15 kroner (EUR 1-1.5) from last Friday. And then there is still some fish left from this week.”

“Now we hear prices on 3-4 kg at 55 kroner (EUR 5.3), 4-5 kg at ​​57-58 kroner (EUR 5.5-5.6) and 5-6 kg around 60 kroner (EUR 5.8),” he added.

Combination
The explanation is increased harvesting activity and reduced purchases from customers on the European continent.

“I hear that there is no available harvesting capacity in northern Norway. The temperature in the sea is so high that the growth has been completely insane. There is a lot of MAB (Maximum Allowed Biomass) harvesting in a number of places,” he said, and added that there is still a lot of ISA (Infectious Salmon Anemia) slaughter going on at some processing plants in the northern part of Norway.

“We should not complain. I hear there are some exporters who have lost a lot – more than us. We hear customers say there is no demand. They have holiday, and so they cut less [fish] than they otherwise do.”

“I think everything ends up in the 50s,” said an exporter. “It is so bloody that it is not easy to say what is happening. I’ll not be surprised if it’s pushed below 55 kroner (EUR 5.3) at 3-4 kg. We’ll see what the market says.”

Collapse
“15 kroner (EUR 1.4) down. A historical collapse. But not unexpected,” said another exporter, and referred to farmgate prices at NOK 53 (EUR 5.1), NOK 54 (EUR 5.2) and NOK 55 (EUR 5.4) for the weight classes three to six kilos.

All six industry sources SalmonBusiness has spoken to after lunch on Friday provide the same market description.

“It is a dramatic drop in price. 52 kroner (EUR 5) for 3-4 kg, 54 and 56 kroner (EUR 5.3-5.5) for 4-6 kg. It is 14 kroner (EUR 1.4) down,” said a third exporter, and quickly added: “It was not unexpected.”

“We expect prices well down in the 50s – and maybe below that – in the time ahead. A lot of fish will come and it’s quiet in Europe. This was well as expected,” he concluded.