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Bakkafrost says salmon demand not threatened by high price
May 23, 2017 / 7:41 AM / 7 months ago

Bakkafrost says salmon demand not threatened by high price

OSLO, May 23 (Reuters) -

** Fish farmer Bakkafrost says near-record salmon prices not expected to lead to a drop in demand in 2017

** Salmon prices are close to record of 80 Norwegian crowns per kilo this week

** CEO Regin Jacobsen says “we have not seen market destruction at current price levels”

** Jacobsen: Seen 70-80 crowns for a long time and we still can’t see that in the market, the market is more afraid of not getting supply than of the prices

** Does not currently anticipate a wave of additional output entering the market

** The market for salmon continues to expand

** Sees high potential in the United States, great potential in China, especially when Norwegian producers again start to access the Chinese market and larger volumes are made available

** Says Norwegian producers must help build up demand in a large market like China; nobody else could do that

** Bakkafrost’s farming segment made an operational EBIT of 34.27 Norwegian crowns per kilo in Q1, up from 30.45 in Q1 2016

** In total operational EBIT came in at 335.5 million Danish crowns, up from 254 millions last year, but below analysts’ expectations of 365 million Danish crowns

** Bakkafrost shares drop 4.8 pct to 297.8 Norwegian crowns by 0733 GMT, vs Oslo Bourse benchmark share index down 0.4 pct

** Shares in competitor Norway Royal Salmon are flat at 163.5 Norwegian crowns after better-than-expected Q1 earnings (Reporting by Ole Petter Skonnord, editing by Terje Solsvik)

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