February 23, 2018 / 1:11 PM / a month ago

Price of Norwegian farmed salmon seen rising further to NOK 65/kg next week

OSLO, Feb 23 (Reuters) - The price of Norwegian farmed salmon is expected to rise further to 64-65 crowns per kilo for deliveries in Oslo next week, up from about 60-61 crowns this week, industry sources told Reuters on Friday.

Prices this week were initially expected to rise 5-6 crowns to 57-59 crowns, but reached a somewhat higher level in the end.

“Prises next week are rising halfway to 70 crowns. There is less fish and some exporters need more fish to comply with their contracts”, said one producer who declined to be named.

An exporter, who also declined to be named, confirmed the price rise.

“In Northern Norway we are at 63-64 crowns per kilo and about 64-65 crowns for deliveries in Oslo,” said the exporter, who agreed that the lack of supply was pushing up prices.

Salmon prices peaked at around 80 crowns per kilo in early January of 2017 at a time when supply constraints supported prices, but have since fallen as volumes grew.

Production growth from Norway is expected to be around 9 percent in 2018, the Norwegian Seafood Council predicted in early January.

Later on fish farmers have cut their expectations for growth to somewhat less than that level.

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.

Average production costs for whole fish, including the cost of harvesting, rose by 13 percent to 34.29 crowns per kilo in 2016, according to data from the Norwegian Directorate of Fisheries.

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

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