December 22, 2017 / 1:38 PM / 3 months ago

Price of Norwegian farmed salmon seen recovering from sharp fall

OSLO, Dec 22 (Reuters) - The price of Norway’s farmed salmon is expected to rise next week for deliveries in Oslo, after unexpectedly plunging in recent days, industry sources told Reuters on Friday.

The year-end Christmas holiday season, traditionally a time of high demand and rising prices, has seen a surge in output in recent weeks, accompanied by significant price fluctuations.

Many producers are expected to curb harvesting in the coming days however, supporting a price recovery.

“Prices are rising for next week because of a shortage of fish,” said a producer who declined to be named.

While some recent trades have been concluded at around 40 crowns or less per kilo, the lowest level of the year, the level for the coming week could stretch to between 47 and 51 crowns, the producer and an exporter predicted.

Salmon prices peaked at around 80 crowns per kilo in early January of 2017 at a time when supply constraints supported prices, but have since fallen as volumes grew.

Norway is the world’s top salmon exporter, and 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 Henrik Stolen, editing by Terje Solsvik)

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