Supply shortage fuels price hike

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Prices skyrocket as supplies of big fish goes down.

“We saw it already on Tuesday. Lack of larger (superior quality) fish, there are still lots of “production fish” (low quality salmon – ed.), and then it dries in quickly. Now there is a real shortage of 5+ [kg]. And a big gap between 4-5 and 5-6 [kg]”, said an exporter 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. We vary the sources we use and do not use the same sources each time.

“It went up again to the same level as the week before”, said another exporter, and refered to the following prices for the coming week:

  • 2-3 kg NOK 52 (EUR 5.2)
  • 3-4 kg NOK 60 (EUR 6.0)
  • 4-5 kg NOK 64 (EUR 6.4)
  • 5-6 kg NOK 66 (EUR 6.6)
  • 6+ kg NOK 72 (EUR 7.2)

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This means a significant stretch in the pricing for the different weight classes. The big fish catches a high premium.

“The next generation is starting to come in. Lack of big fish that pulls up the weight classes,” he explained.

“There must be a stronger market than we are aware of. I’m surprised,” he added.

Surprised
“There are large fluctuations,” said a third exporter. “I am surprised. I do not know what to say. We can speculate. It is a volatile industry.”

He mentioned the following prices for fish to be delivered next week:

  • 3-4 kg NOK 63 (EUR 6.3)
  • 4-5 kg ​​NOK 67 (EUR 6.7)
  • 5-6 kg NOK 70 (EUR 7.0)
  • 6+ kg NOK 73 (EUR 7.3)

“It’s confusing. I hear high prices and I hear more sober prices,” said an importer and refered to farm gate prices for 5+ kg around EUR 7.

Insane
“I think the situation with “production fish” has messed up a lot in terms of uptake and harvest rate. But now I think we are approaching a time when “prod” in Norway is controllable,” said a Central Norwegian farmer.

“It is insanely strong,” he said about the market. “Food does not go out of fashion. When biomass erupts as it does – the price of salmon rose two months before I thought it would. But there is a difference in the price of the sizes.”

“It started at a high level this morning, and has really only risen,” he said and presented the following prices:

  • 3-4 kg NOK 66 kroner (EUR 6.6)
  • 4-5 kg NOK 70 kroner (EUR 7.0)
  • 5-6 kg NOK 73-74 kroner (EUR 7.3-7.4)
  • 6+ kg, air-packed, NOK 76-77 EUR 7.6-7.7)

“It’s completely wild,” he chuckled.