May 4, 2018 / 12:35 PM / 16 days ago

Norwegian salmon price seen rising to NOK 77-78 next week -sources

OSLO, May 4 (Reuters) - The price of Norwegian farmed salmon is expected to rise by up to three crowns to a range of 77-78 crowns per kilo for deliveries in Oslo next week, industry sources told Reuters on Friday.

This week, prices were initially expected to rise 4-5 crowns to 71-72 crowns but ended at around 75-76 crowns.

“We believe prices will rise 1-2 crowns from 75-76 crowns this week,” said one producer, who declined to be named.

“There is less fish and, in addition, some exporters have delivery commitments to cover that are pushing up prices,” the producer added.

An exporter, who also declined to be named, confirmed the price rise.

“In average we have bought salmon at 78 crowns per kilo,” said the exporter, who expected the high prices to continue through May.

The producer thought high prices would continue in June before more production could ease prices.

In late January, the price of salmon stood at around 50 crowns per kilo, on fears of strong supply growth, but a cold Norwegian winter has since resulted in slower growth in fish stocks, giving a new price spike.

Norway is the world’s top salmon exporter, with fish farming the Nordic country’s second-largest export industry after oil and gas production. The share price of listed farming companies depends heavily on changes in the price of fish.

Average production costs for whole fish, including the cost of harvesting, rose by 13 percent to 34.29 crowns per kilo in 2016, according to data from the Norwegian Directorate of Fisheries.

Leading Norwegian producers include Marine Harvest, Salmar, Leroy Seafood, Grieg Seafood and Norway Royal Salmon. (Reporting by Ole Petter Skonnord, editing by Gwladys Fouche)

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