Salmon prices continue to slide

News
1038

Testing the EUR 4 barrier for the first time since the fall of 2015.

“It’s complete chaos. We (Norway – ed. note) will probably sell 30,000 tonnes next week. But we haven’t done anything yet,” says a sales manager for a large fish farming company to SalmonBusiness.

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 in print. We vary the sources we use and do not use the same sources each time.

He has a lot of fish to place. The processing plant is operating at double shifts.

“Chile is closed, they have holidays, and that is positive for the air cargo market,” he says, but lets it shine through that the market is very demanding.

“We are harvesting too much fish. We can’t cover it. It is declining,” says one exporter about the salmon price.

“The problem now is that it is full. And when the market is full, you have to use price. There is no short-term solution to this – if anyone would believe it. Now customers have all the power. They can dictate the price.”

“We know there a lot is frozen inventory. And it will be like a huge plug in the market in the future,” he predicts.

He estimates that between 20 and 30 percent of the market is covered by fixed contracts. The remaining goes in the spot market.

“Next year’s contracts are now at NOK 55 (€5.5). Had I been a farmer, I would have run and taken it.”

But not everyone shares the perception of falling prices.

“Stable prices, as I see it. Some reduce (harvesting) next week, so the price can go upwards during the coming week,” says another exporter.

SalmonBusiness’ five independent industry sources refer to the following salmon prices for delivery in the coming week:

  • 3-4 kilograms NOK 36-38 (EUR 3.6-3.8)
  • 4-5 kilograms NOK 38-40 (EUR 3.8-4.0)
  • 5-6 kilograms NOK 40-42 (EUR 4.0-4.2)