OSLO Feb 24 The average price of Norwegian
farmed salmon is dropping 2-3 crowns to 58-59 crowns per kilo
for deliveries in Oslo next week, industry sources told Reuters
It will be the first time since early October that prices
fall below 60 crowns per kilo.
"We are still at a high level, 58-59 crowns on average. What
we see is that the market is saying 'no' because prices to
end-consumers have risen. We have to work hard to get back up,"
a producer who declined be named told Reuters.
An exporter confirmed the drop, adding that demand had
weakened after months of high prices.
"In Northern Norway salmon is traded at 57-57.5 crowns, for
deliveries in Oslo you have to add 1 crown," the exporter said.
"It's not because volumes are rising but the market is a bit
weak. To find the right price level is difficult," he added.
Since early January, prices have fallen from around 80
crowns per kilo.
Still, earnings margins remain high by historical standards,
despite a sharp rise in production costs in Norway in recent
years to around 30-31 crowns per kilo.
Norway is the world's top salmon exporter, with leading
producers including Marine Harvest, Salmar,
Leroy Seafood, Grieg Seafood and Norway Royal
Supply constraints are expected to support prices in the
first half of 2017 before an expected increase in volumes later
in the year, Norwegian salmon farmers such as Marine Harvest
, Leroey Seafood and Salmar recently
(Reporting by Ole Petter Skonnord, editing by Terje Solsvik)