July 29, 2016 / 12:31 PM / a year ago

Norway salmon prices seen falling next week

OSLO, July 29 (Reuters) - The average price of Norwegian farmed salmon is expected to extend a recent slide next week to around 55-57 crowns per kilo, depressed by rising production, industry sources told Reuters on Friday.

Fish farms are likely to step up output as more Norwegians return to work after the peak summer vacation month of July, they said. At the same time, demand in many other European nations is usually low during August.

“There will be more production and it may push prices down during August,” said one exporter who predicted prices of 55-56 crowns per kilo next week, down from an estimated 58 crowns this week.

Separately, a salmon producer who estimated that prices averaged 60 crowns this week forecast they would slip to 56-57 crowns in the coming week.

Three weeks ago, prices jumped to a record high above 80 crowns per kilo, due to low production during the peak holiday season in Norway at a time of high demand in Europe.

Production costs in Norway have risen sharply in recent years to around 30 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 5-9 percent in 2016 due to declining production in Norway (down 3-5 percent) as well as in Chile (down about 25 percent), the world’s second largest producer. (Reporting by Ole Petter Skonnord, editing by Alister Doyle)

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