OSLO, May 19 (Reuters) - The price of Norwegian farmed salmon is expected to rise to near-record levels next week, as supplies from Norway are constrained by yet another public holiday, sources in the fish farming industry told Reuters on Friday.
“Prices are rising to around 78 Norwegian crowns ($9.3) for delivery in Oslo next week, up four crowns from this week,” said a salmon producer who declined to be named.
“Due to the public holidays in May there is less production, but we don’t think the current price level is sustainable over time,” the producer added.
An exporter confirmed prices were expected to jump, adding that some of the larger fish, which attract a higher price per kilo, were also trading above 80 crowns.
Prices peaked at around 80 crowns per kilo in early January before dropping to 50 crowns, but have since rallied.
Industry earnings margins are still high by historical standards, despite a sharp rise in production costs in Norway in recent years to around 32-33 crowns per kilo.
Supply constraints are expected to support prices in the first half of 2017 before an expected increase in volumes later in the year.
Globally the fish farmers expect an output growth of around 3 percent this year despite a volume drop so far in 2017. In Norway, output is seen rising by around 2 percent.
Norway is the world’s top salmon exporter, with leading producers including Marine Harvest, Salmar, Leroy Seafood, Grieg Seafood and Norway Royal Salmon. ($1 = 8.3927 Norwegian crowns) (Reporting by Camilla Knudsen, editing by Terje Solsvik)