OSLO, March 24 (Reuters) - The average price of Norwegian farmed salmon is expected to fall by 1-2 crowns to 61-62 crowns per kilo for deliveries in Oslo next week, sources in the fish farming industry told Reuters on Friday.
This week prices have ranged from 62 to 63 crowns, in line with expectations.
“Prices are down 1 crown to 61-62 crowns next week,” said a salmon producer who declined to be named. “We expect volumes to rise as Easter approaches.”
The upcoming Easter holiday, set for mid-April, is normally associated with a seasonal upswing in demand for salmon as well as an increase in prices.
A fish exporter confirmed week-ahead prices were dropping.
“Prices have not yet been confirmed but there is a decline. We believe prices will end at 61-62 crowns in Oslo next week compared to 63 this week,” the exporter said.
“The market is quiet. We expected more demand before Easter. More fish is slaughtered and prices are dropping,” he added.
Salmon 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 Ole Petter Skonnord, editing by Terje Solsvik)