July 7, 2017 / 12:09 PM / 6 months ago

Norway salmon price could drop to NOK 60 or below -industry sources

OSLO, July 7 (Reuters) - The price of Norwegian farmed salmon is expected to fall next week and may drop below 60 crowns per kilo for deliveries in Oslo, down from around 64-65 crowns in the current week, industry sources told Reuters on Friday.

A quiet summer market has however resulted in a significant spread between what buyers are offering and what sellers demand, they added.

“It’s been a bad week, and next week we believe prices might drop further to average 57-58 crowns,” said an exporter who declined to be named.

“We have been buying smaller fish, of 2-3 kilos, for around 45-46 crowns per kilo, 3-4 kilo fish at 55 crowns, while bigger fish sizes are more expensive,” the exporter added.

A salmon producer also expected a drop, but not by as much.

“Prices are down, to between 60-63-64 crowns. The market is quiet due to summer holidays, while the volume is not very high,” the producer said.

Prices peaked at around 80 crowns per kilo in early January before dropping to 50 crowns, but have since rallied before easing again.

Norway is the world’s top salmon exporter, and the share price of listed farming companies depends heavily on changes in the price of fish.

Production costs are at 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.

Leading Norwegian producers include Marine Harvest, Salmar, Leroy Seafood, Grieg Seafood and Norway Royal Salmon. (Reporting by Ole Petter Skonnord, editing by Terje Solsvik)

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