Salmon price rise hits the buffers

The recent rapid rise in the price of salmon is slowing down, according to the latest figures from Statistics Norway.

More up to date market information also suggests that, while prices remain high, a correction has been taking place in the past few days.

The latest available figures show that fresh salmon increased only marginally to NOK 108.21 per kilo in the week ended 8 May.^.  

Less fish was exported over that week down by 2.4% from 14,245 tonnes to 13,902 tonnes.

Frozen salmon prices remain fairly stable at around NOK 78.09 a kilo when 239 tonnes were exported.

While the latest figures from Statistics Norway are awaited later this week, exporters are reporting that there is a great deal of unsold fish around which means prices have dropped to between NOK 90 and NOK 98 a kilo. Two or three months ago, even that level would have been classed as being quite remarkable.

The suggestion is that prices will have to come down further partly due to consumers tightening their belts against rampant inflation, a factor which is adversely affecting almost all major protein foods.

Most of the salmon producers reporting first quarter results over the past week said that they expect the global market, and therefore prices, to remain tight with a reduction this year in the global harvest.

Norway, Canada and Chile are predicted to harvest around 21,000 tonnes less salmon this year while demand from hotel and restaurant  businesses in most parts of the world is rapidly building up following the Covid pandemic.

Meanwhile, the big unknown is inflation: how far it will rise, and how consumers will react.