OSLO, May 12 (Reuters) - The price of Norwegian farmed salmon for delivery next week is largely stable after a surge to above 70 crowns per kilo in the current week, sources in the fish farming industry told Reuters on Friday.
“Prices are stable at 71-72 crowns in the north (of Norway), and then you can add 1 crown for deliveries in Oslo,” said an exporter who declined to be named.
“We are surprised, but there is a public holiday next week and less fish (available),” the exporter added.
A producer also predicted a near-flat development, at around 73-74 crowns for Oslo deliveries, adding that exporters were forced to pay high prices due to shortages.
“There are only four working days in each of the next two weeks, and that means less fish,” the producer added.
Prices peaked at around 80 crowns per kilo in early January before dropping to 50 crowns, but have since rallied.
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 said this week.
Globally the fish farmers expect an output growth of around 3 percent this year despite a volume drop so far in 2017. In Norway, output is seen rising by around 2 percent.
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 Ole Petter Skonnord, editing by Terje Solsvik)