Weak NOK is making fish feed more expensive

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While fish farmers receive a boost on salmon sales, feed costs are rising.

Now fish feed prices are approaching its highest price level of all time. In the second quarter, the feed price climbed to NOK 11.82 (EUR 1.18) per kilo – not far from the close of NOK 12 (EUR 1.19) in 2015 and 2017.

“The driver in the feed market is the weakening of the Norwegian kroner,” said Skretting communications manager Leif Kjetil Skjæveland to SalmonBusiness.

More expensive
“Most of the raw materials are traded in US dollars, and then the feed becomes more expensive paid in Norwegian kroner,” Skjæveland explained.

The US dollar is currently trading at 9.02 against the Norwegian kroner. Consequently, there is no prospect of radically cheaper feed in the first place.

Weaker
“This is what we are going into this quarter with, and according to the currency brokers, it does not look like the kroner will strengthen with the first,” he added.

Feed prices are calculated by SalmonBusiness on the basis of average price attainment at feed producers BioMar and EWOS/Cargill.