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Last Trade - 07/05/21

Sector
Consumer Defensives
Size
Large Cap
Market Cap £3.53bn
Enterprise Value £3.80bn
Revenue £529.9m
Position in Universe 163rd / 1832

Price of Norwegian farmed salmon drops below NOK 50/kilo

Fri 12th January, 2018 1:00pm
OSLO, Jan 12 (Reuters) - The price of Norway's farmed salmon 
is expected to fall below 50 Norwegian crowns per kilo next week 
for deliveries in Oslo, from 53-54 crowns in the current week, 
industry sources told Reuters on Friday. 
    "It's difficult to predict prices but it's certainly down 
and below 50 crowns," said a producer who declined to be named. 
    He added that a price drop is a normal seasonal pattern 
after the Christmas holidays and that the market could possible 
tighten again towards the end of January. 
    An exporter confirmed prices were falling and was even more 
pessimistic. 
    "It's bad. We are down 6 crowns to an average of around 
48-49 crowns per kilo in Oslo," the exporter said. 
    "What happens now scares me a little because the drop is not 
caused by higher volumes but low demand. I believe we could see 
40 crowns pretty soon," 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. 
    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)) 
 
Keywords: NORWAY SALMON/
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