December 9, 2016 / 1:29 PM / a year ago

Norway salmon price seen rising to 73-75 crowns next week

OSLO, Dec 9 (Reuters) - The average price of Norwegian farmed salmon is expected to jump by around 5-7 crowns per kilo to 73-75 crowns next week thanks to strong seasonal demand ahead of the Christmas holiday, industry sources told Reuters on Friday.

“We expect on average 73 crowns per kilo. It’s very high and the buyers doesn’t like it but we have to accept it, it’s Christmas and they need the salmon,” said an exporter who declined to be named.

“I‘m sure this will be the pre-Chistmas peak”, he added.

A salmon producer confirmed prices were surging and expected to obtain around 74-75 crowns per kilo for 3-6 kilo salmon, which are the main sizes.

“There’s more demand before Christmas and I also have a feeling that the volume is lower,” the producer said.

Prices have been volatile so far in 2016 and hit a record in July above 80 crowns per kilo as supply fell while demand rose. Prices then proceeded to fall to a level just above 50 crowns before rising again.

Production costs in Norway have risen sharply in recent years to around 30-31 crowns per kilo on average.

Norway is the world’s top salmon exporter, with leading producers including Marine Harvest, Salmar, Leroy Seafood, Grieg Seafood and Norway Royal Salmon.

Companies and analysts have predicted that the global supply of salmon will fall by 6-7 percent in 2016 due to declining production in Norway as well as in Chile, the world’s second largest producer. (Reporting by Ole Petter Skonnord, editing by Terje Solsvik)

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