February 16, 2018 / 1:07 PM / a month ago

Price of Norwegian farmed salmon seen rising to NOK 57-59/kg next week

OSLO, Feb 16 (Reuters) - The price of Norwegian farmed salmon is expected to rise to a range of 57-59 crowns per kilo for deliveries in Oslo next week, up from about 52-53 crowns in the current week, industry sources told Reuters on Friday.

“Prices are rising, probably up 3-4 crowns to 57-58 crowns for salmon weighing 3-6 kilo. It’s said to be because of lower supply,” said one producer, who declined to be named.

He warned however that a rapid price increase could trigger a backlash in the form of lower demand, and thus depress prices in the longer run.

A salmon exporter confirmed that prices were expected to rise for the coming week.

“Prices are sharply up and near 60 crowns per kilo in Oslo, up 7 crowns from the current week,” he said, adding that not enough fish had been harvested and that poor weather conditions along Norway’s coast had contributed to a tight market.

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.

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 Terje Solsvik)

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