2 Min Read
OSLO, April 21 (Reuters) - The average price of Norwegian farmed salmon is expected to fall by 3-5 crowns to 60-64 Norwegian crowns per kilo for deliveries in Oslo next week, sources in the fish farming industry told Reuters on Friday.
"The market is awaiting the seafood expo in Brussels next week. So far it is quiet, but we definitely see lower prices," said a producer who declined to be named.
Going forward he expected prices to stabilise, with fewer production days available in May when Norway has a string of public holidays.
A fish exporter also confirmed prices were falling, and predicted a level of around 63-64 crowns.
"This is not unexpected. Prices came up too much after Easter, so what we see now is a natural correction," the exporter said.
Prices have fallen from around 80 crowns per kilo in early January but industry earnings margins are still high by historical standards, despite a sharp rise in production costs in Norway in recent years to around 32-33 crowns per kilo.
Supply constraints are expected to support prices in the first half of 2017 before an expected increase in volumes later in the year, fish farmers including Marine Harvest, Leroey Seafood and Salmar recently said.
Norway is the world's top salmon exporter, with leading producers including Marine Harvest, Salmar, Leroy Seafood, Grieg Seafood and Norway Royal Salmon. (Reporting by Camilla Knudsen, editing by Terje Solsvik)