OSLO, Jan 6 (Reuters) - The average price of Norwegian farmed salmon is expected to drop to around 72-73 crowns per kilo next week as demand eases following a peak around the Christmas season, industry sources told Reuters on Friday.
For the current week, salmon traded at around 75 crowns per kilo, unchanged from late 2016 but below an initial expectation of a rise to 77-78 crowns.
"Prices are down a lot," a salmon producer said when comparing to levels seen just one week ago.
"For deliveries in Oslo we expect 72-73 crowns on average," he said, adding that prices for next week could still change as additional transactions get settled later on Friday.
A fish exporter, who also declined to be named, confirmed there was a significant drop, while adding that for the biggest fish, weighing more than six kilos, the price per kilo had fallen by some 10 crowns.
"On average the level may be around 72-73 crowns," he said, adding that prices close to 80 crowns per kilo were unsustainable.
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 salmon supply from Norway and globally will increase by around three percent in 2017 after a drop of 6-7 percent in 2016 due to declining production in Norway as well as in Chile, the world's second largest producer. (Reporting by Ole Petter Skonnord, editing by Terje Solsvik)