The salmon price rises towards the last full shopping week of the year

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Full activity in all the processing plants as pre-Christmas shopping nears its end.

“Now they are talking about a rise in price, but the market is not there. The farmers are talking about 42 kroner (EUR 3.9), but the market is not there. You get 4.10-4.20 euros for the different sizes (DDP, delivered Europe). If we’re having one krone in margin, the price is a maximum of 40 kroner at 3-6 kg and 38 kroner at 6+, said a buyer 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.

“You do not get more. It’s Christmas soon,” he said.

“We will reduce the quantity next week. Now Germany is closing down again. Denmark and there is talk that London will close due to corona. We notice our German customers do not take positions at all. They will only buy something if they have resale. And we can not really do that either.”

“There is a slightly better demand for Monday and Tuesday packing, but then there is a toll stop from Wednesday,” he said.

Difference
No one wants to end up with too much fish now. SalmonBusiness’ industriy sources refer to a farmgate price level between EUR 3.7 and 3.9 per kg.

“The farmers want it up, the exporters want it stable. There is a big difference in what they want compared to what they can offer,” an importer pointed out.

He has noticed the air freight trouble in Chile, which indicates the loss of 15 percent of Chilean fresh fish.

“The air freight market has grown a lot in recent years, and will come down due to reduced capacity and higher freight rates. Alternative logistics solutions will force themselves forward,” he said and pointed to increasing environmental focus.

He made no secret of the fact that he’s offered lots of fish.

“The supply is extremely high. Chile is coming down a bit now after the summer, but Norway will have a hell of a lot of fish all year round,” he said and estimates the level for annual contracts at EUR 4.7-5.2.

“But it’s okay with a redistribution of earnings. The middleman and retail have been fine, while the farmers have been put under pressure,” he said.

Last week
“The market does not seem to be moving. Everyone is familiar with the risk of having a lot of fish in a short week. The experienced buyers out there know this very well too,” said a trader.

“I think the producers are thinking – this is the last week. Now the Christmas sale must come. All processors must pack. There is no downsizing,” he said and see stable prices for the next week.