Norway salmon biomass continues to rise

PRICES may have see-sawed sharply  in recent weeks, but Norway Norway’s salmon biomass is continuing to increase, according to the latest data.
Seafood Norway, which represents most salmon farming companies,  reports that the volume of salmon in cages at the country’s fish farms, as measured by weight, rose by six  per cent year-on-year last month. The quantity in June was estimated at 636,000 tons, a rise of 8,000 tons on the previous month. Norway’s biomass has been moving upwards  at a steady rate since the beginning of the year.
Salmon prices have fallen quite sharply in the past two, but this appears to be a trend that happens regularly during the summer holiday season when many farms draw  back on production, often just to catch up on maintenance. Analysts believe that over the long term demand for salmon is growing faster than supply which is why the  industry is not unduly concerned about short term fluctuations. The industry also hedges itself through such situations with forward contracts and exports, especially into Europe, are running at record levels in revenue terms.
The Oslo Stock Exchange, where most Norwegian salmon farming companies are listed, is in buoyant mood. After a fairly sluggish start to the year, the Seafood Index, has been the fastest riser with an increase of 41.6 per cent. But prices have fluctuated wildly during the first half of this year, varying from between 52 kroners a kilo up to NOK 80 per kilo just three months ago.
The Norwegian Seafood Council believes that growth and prices will be dictated by strong demand from Asian countries like China over the next few years.