July 3, 2024

Norwegian seafood export growth stalls amid falling salmon prices

The Norwegian seafood export boom has ground to a halt, as figures from the country's Seafood Council showed that overseas sales in the first six months of this year fell by NOK 1.6 billion (US$150 million), or 2% to NOK 80.6 billion (US$7.5 billion), compared to the same period last year due to poor June sales, Fish Farmer reported.

The Seafood Council remained optimistic, noting that although there was no growth in value during the first half of this year, it still represents the second-highest figure recorded in terms of value. Only 2023 was better.

CEO Christian Chramer said weak Norwegian krone and high prices for cod and salmon boosted value in the first five months of the year. But the growth stopped in June, which is largely driven by falling salmon prices.

Fisheries and Oceans Minister Marianne Sivertsen Næss said that despite the downturn, the seafood industry is delivering strong figures with the second-best half-year figures ever.

The minister said weakened purchasing power in key markets, lower export volumes, and increased competition from other seafood nations is something Norway must take very seriously.

Chramer noted that salmon still accounts for 70% of the total value of Norwegian seafood exports. When the price of fresh whole salmon fell by as much as NOK 31 (per kg) in June compared with the previous month, it had a major impact on the total value. Salmon grew in value for 36 consecutive months before stalling in March this year. In the first half of the year, the value fell by NOK 1.8 billion (US$169 million), or 3%, compared with the same period in 2023.

Chramer said the situation was demanding in the first half of the year as biological challenges resulted in lower harvesting volumes and a change in product composition towards more fillets.

In June, global competition from other producer countries also increased, which had a negative impact on prices. The battle for salmon customers has now really intensified. Chramer added.

-      Fish Farmer