Norwegian salmon price seen falling to 9-month low next week (updated)

Austevoll Seafood ASA

17/08/2018 13:26

(Adds quotes, details)
    OSLO, Aug 17 (Reuters) - The price of farmed Norwegian
salmon is expected to drop to a nine-month low of around 46-48
Norwegian crowns ($5.42-$5.66) per kilo next week from this
week's 48-49 Norwegian crowns as supply continues to grow,
industry sources said on Friday.
    "We expect 45-46 crowns next week, probably 46 crowns on
average. The market is OK, but there is too much salmon
available. We expect this (high harvesting) to continue until
October," said one exporter who declined to be named.
    Last week Norway's export volume rose by 8.7 percent from
the same week last year to 18,978 tonnes of salmon.
    The exporter said fish farmers were forced to harvest more
salmon due to the prevalence of sea lice and other biological
issues, partly caused by the warm Norwegian summer.
    The early slaughter of fish could in turn limit next year's
supply growth however, and prices could thus begin to recover
before the end of 2018.
    A salmon producer also said he predicted a drop in prices
for next week.
    "So far it's quiet, but it seems prices end between 45 to 48
crown, and with a premium for salmon bigger than 6 kilo. It's a
combination of more production and holiday in Europe. Production
has to drop before we could see a price rise," he added.
    Average production costs for whole fish, including the cost
of harvesting, stood at 34.36 crowns per kilo in 2017, or 0.12
crowns lower than in 2016, according to data from the Norwegian
Directorate of Fisheries.
    Norway is the world's top salmon producer, with fish farming
the country's second-largest export industry after oil and gas.
The share price of listed farming companies depends heavily on
changes in the price of fish.
    Leading Norwegian producers include Marine Harvest  MHG.OL ,
Salmar  SALM.OL , Leroy Seafood  LSG.OL , Grieg Seafood
 GSFO.OL  and Norway Royal Salmon  NRSM.OL .
        
($1 = 8.4868 Norwegian crowns)

 (Reporting by Ole Petter Skonnord, editing by Terje Solsvik)
 ((camilla.knudsen@thomsonreuters.com; +47 2331 6595; Reuters
Messaging: camilla.knudsen.thomsonreuters.com@reuters.net))