OSLO, March 3 (Reuters) - The average price of Norwegian farmed salmon is dropping 3-8 crowns to 50-55 crowns per kilo for deliveries in Oslo next week, industry sources told Reuters on Friday.
This week prices were around 58 crowns per kilo, the first time since early October that prices were below 60 crowns.
“It’s uncertain and we are not sure, but prices are dropping to between 50-55 crowns next week,” one producer, who declined to be named, told Reuters.
An exporter confirmed the sharp fall.
“The average in Oslo may end up at 55 crowns, at most, probably less,” the exporter said.
“It’s a poor market. We have lost a lot of sale due to high prices in recent months, so we believe prices could drop further,” the exporter 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 Salmon.
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. (Reporting by Ole Petter Skonnord, editing by Terje Solsvik)