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Last Trade - 06/05/21

Sector
Consumer Defensives
Size
Large Cap
Market Cap £3.65bn
Enterprise Value £3.90bn
Revenue £543.7m
Position in Universe 160th / 1836

Norwegian salmon price seen rising further to NOK 68-70/kg next week

Fri 2nd March, 2018 1:27pm
OSLO, March 2 (Reuters) - The price of Norwegian farmed
salmon is expected to rise  further next week to 68-70 crowns or
more per kilo for Oslo delivery, up from about 66-67 crowns this
week, due to limited harvesting, industry sources told Reuters
on Friday.
    It would be the fourth consecutive week of rising prices,
from a level of around 50 crowns in early February.
    For the current week, prices were initially expected to rise
by 3-4 crowns to 64-65 crowns, but reached a somewhat higher
level in the end.
    "We are in final negotiations, and prices seem to end up at
around 70 crowns or more for the upcoming week," said a producer
who declined to be named, while adding that the increase was
primarily triggered by a shortage of supplies.
    Separately, a fish exporter said he expected prices to rise
to about 68 crowns next week. The recent sharp rise could
eventually trigger a backlash in the form of less demand,
sending prices lower again, he added.
    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.  urn:newsml:reuters.com:*:nL8N1P32Q4
    Fish farmers have predicted somewhat lower growth however.
    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  MHG.OL ,
Salmar  SALM.OL , Leroy Seafood  LSG.OL , Grieg Seafood
 GSFO.OL  and Norway Royal Salmon  NRSM.OL .

 (Reporting by Ole Petter Skonnord, editing by Terje Solsvik)
 ((olepetter.skonnord@thomsonreuters.com; +47 952 79 474;
Reuters Messaging:
olepetter.skonnord.thomsonreuters.com@reuters.net))
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