December 16, 2016 / 1:48 PM / 9 months ago

Norway salmon prices seen rising further next week

OSLO, Dec 16 (Reuters) - The average price of Norwegian farmed salmon could hit a new record next week in a volatile trade ahead of the Christmas holidays, industry sources told Reuters on Friday.

This week, average prices rose to 74-75 Norwegian crowns amid strong demand and lack of supply.

“Some people talk about 100 crowns ($11.5) per kilo. That’s too much. We assume 75 crowns per kilo for the smallest fish of 2-3 kilo next week and up to 85 crowns for the biggest fish above 6 kilo,” said a producer who declined to be named.

An exporter, also he unnamed, indicated a price of above 80 crowns for fish of 3-6 kilo next week, which are the main sizes, and 90 crowns or more for bigger ones.

“Because of the high prices, it’s actually very quiet. I fear that there will be a backlash,” the exporter said.

Prices have been volatile this year and hit a record in July above 80 crowns per kilo. Prices then proceeded to fall to just above 50 crowns before turning higher.

Production costs in Norway have risen sharply in recent years to around 30-31 crowns per kilo on average.

Norway is the world’s top salmon exporter, with leading producers including Marine Harvest, Salmar, Leroy Seafood, Grieg Seafood and Norway Royal Salmon.

Companies and analysts have predicted that the global supply of salmon will fall by 6-7 percent in 2016 due to declining production in Norway as well as in Chile, the world’s second largest producer. ($1 = 8.6779 Norwegian crowns) (Reporting by Ole Petter Skonnord, editing by Jussi Rosendahl)

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