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UPDATE 1-Marine Harvest and Salmar see more supply ahead, still expect a strong market
May 10, 2017 / 8:19 AM / 4 months ago

UPDATE 1-Marine Harvest and Salmar see more supply ahead, still expect a strong market

(Adds comments from Salmar CEO)

OSLO, May 10 (Reuters) -

** Fish farmers Marine Harvest and Salmar expect the global supply of salmon to increase later this year, following a year-on-year drop in Q1

** Despite more volumes ahead, both producers are confident of a continued strong market

** CFO Ivan Vindheim of the world’s biggest salmon farmer, Marine Harvest says global salmon supply unlikely to see significant growth in coming years

** Vindheim estimates global supply growth 1-5 pct in 2017, or 3 percent as a mid-point, up from minus 1 to plus 4 percent seen previously

** Vindheim sees limited supply growth in 2018 and 2019 as well

** Vindheim says supply-demand balance looks favourable to prices

** Prices were record high in Q1, market reference price in Norway EUR 7.27 per kilo (NOK 65.32 per kilo), up 11.5 pct from Q1 2016

** Despite high prices Vindheim says about demand for salmon: “all-in-all the response is great at this level, actually better than we thought some months ago”

** Global supply fell 4 percent in first quarter vs first quarter in 2016

** Competitor Salmar ups its outlook for global supply output by 1 percentage points for 2017 to 3 percent

** Salmar CEO Trond Williksen says “we can read figures and we see there will be more supply in the third and fourth quarters, but we still expect a strong market” (Reporting by Ole Petter Skonnord, editing by Terje Solsvik)

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