Lower salmon production led to higher prices last year. That situation is about to turn, according to an analyst who believes salmon prices are on the way down.
So far this year, the average price for Norwegian salmon exports has been NOK 65.50 per kilo Dagens Næringsliv writes and refers to figures from Statistics Norway (SSB).
– 2016 became a tight year because volume was much smaller than originally predicted due to sickness, demands for early slaughter, problems in Chile and other reasons.
Therefore the volume in the spot market was reduced and the price jumped from NOK 40 to over 60 overnight, according to Seafood Analyst in Swedbank, Marius Gaard.
– Now the situation is reversed completely. There are significantly higher volumes available in the spot market than last year, both from Norway and from other countries. Therefore there is way too much fish in the market.
Gaard is therefore aware that the price is going down, but does not know by how much.
– The question is whether we will return to NOK 50 or even lower. We indeed believe on an average price of NOK 61 for the year, but the risk is clearly on the downside, he says.
Source: NTB scanpix / Norway Today