November 19, 2013
Despite a sharp increase in salmon production, a study on salmon and trout hatchery production has revealed a decrease in profitability for the 2011-12 period, the Fisheries Directorate from Norway reported.
According to the report, between 2011 and 2012, salmon sales rose by 175,000 tonnes, which was the highest increase recorded in the last 20 years. However, profitability from the species production varied greatly during these two decades, and was determined to a great extent by the variation in the price achieved, noting it does not seem to be strongly influenced by the volume sold. The best years were 1994, 2000, 2006 and 2010 whereas the worst ones were 1996, 2002, 2008 and 2012.
It was also highlighted in the report that the operating margin in 2012 reached the lowest level measured since 2003 and pointed out that based on the prices in 2013, it is expected that this year there will be a significantly higher profitability, given the change in average production cost per kilogramme.
As to the variation in prices, it has been shown that they remained fairly stable over the last 15 years.
The data on the hatchery sector included in the report stress that despite the average selling price per fry and smolt sale increased during the period studied, there was a slight decline in profitability in 2012. It has also been noted that the earnings per piece given the lower production costs per piece increased at levels which were higher than the price rise.
The calculations show that the hatchery industry had a combined profit before tax of US$79 million in 2012, representing a decrease from US$86.7 million achieved in 2011.
It has been pointed out in the preliminary results for fish producers published in August that the reduced selling prices have contributed to this drop in profits for the industry in 2012.
The calculations show that the fish industry achieved a total profit before a tax of US$294 million in 2012, which represents a significant drop compared to US$800 million achieved in 2011.
