OSLO, Jan 13 (Reuters) - The average price of Norwegian farmed salmon is set to fall by 1-2 crowns next week to around 70-72 crowns per kilo as output rises, industry sources told Reuters on Friday.
In the current week prices for deliveries in Oslo were around 72-73 crowns per kilo.
A salmon exporter, who declined to be named, predicted prices of 70-72 for the coming week, while a producer estimated a level of 71-72 crowns.
The market remains difficult for export agents following a surge in prices last year on the basis of falling supplies, as end-customers often find the current levels to be too expensive.
"We are losing money at these levels, while the producers are earning 40 crowns per kilo. Everybody expects prices to drop, and when the Chinese new year celebrations start we believe it will happen," the exporter said.
Available volumes are also expected to rise in coming weeks, he added.
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)