June 24, 2019

 

Norway salmon prices pressured by high export volume growth

 

 

Norway's exports of salmon (the most important species for Norwegian seafood exports) in May increased 14% to 91,000 tonnes, valued at NOK6.1 billion (US$711.81 million), up 1% or NOK52 million compared with May last year.

 

The average price for fresh whole salmon in May was NOK62.17 ($7.26) per kilogramme compared with NOK73.16 ($8.55)/kg in May last year. The Norwegian Seafood Council (NSC) said the strong growth in export volumes over the past two months has put pressure on salmon prices.

 

"Historically, May has tended to see increases in salmon prices, but the strong volume growth has reversed this picture this year," said Paul T. Aandahl, NSC seafood analyst.

 

Aandahl said the favorable production conditions, partly due to the warm winter, have resulted in increased exports in recent months. At the same time, the demand for Norwegian salmon continues to increase, especially in the EU and Asia.

 

Poland, France and Denmark were the largest export markets for salmon from Norway in May.

 

Exports through May

 

In the five months through May, Norway exported 425,000 tonnes of salmon valued at NOK29 billion ($3.39 billion). This is an increase in volume of 6% and an increase in value of NOK2 billion or 8%.

 

Meanwhile, Norway exported 181,400 tonnes of seafood with a value of NOK8.7 billion in May. This is an increase of NOK284 million or 3% compared with May last year. In the first five months, seafood exports totalled NOK43.3 billion. This is an increase of NOK3.2 billion or 8% compared with the same period last year.

 

"There has been a growth in export value for several species in May, where export earnings from salmon and mackerel in particular have increased", said Tom-Jørgen Gangsø, director of market insight and market access with the NSC.

 

He added that demand for Norwegian seafood remains strong overall, especially in Europe and Asia. At the same time, the Norwegian krone's weakening, especially against the dollar, has had a positive impact on the export price.

 

Despite the increase in both volume and value, some companies have suffered great losses in their production due to the recent algae outbreak.