OSLO: Sales of Norwegian salmon to Europe dropped in January, as higher prices start to hit consumers, according to a release from the Norwegian Seafood Council (NSC).
According to NSC, Norway exported 70,100 metric tons of salmon worth NOK 5.3 billion ($64.24 million) in January, down NOK 1.1bn, or 25%, year-on-year. Export volumes to the EU dropped by 5,400t, whilst the total decline in volume across all markets was 2,700t. The value of salmon exports increased by NOK 1.1bn or 25%, compared with January last year.
“The start of the 2017 seafood year has been marked by a reduced supply of salmon from Norway and continuing high prices. It helps that less salmon has been sold in Europe, whilst more salmon is en route to the US and Asian markets,” said Geir Havard Hanssen, communications director with NSC. In January 2016, the average price for fresh whole salmon was NOK 55.56 per kilogram. In January this year, the price rose to NOK 72.37/kg.
Poland, France and Denmark were the biggest importers of Norwegian salmon. Reduced availability and high prices have impacted the supply of salmon in key European export markets. In Spain salmon has been displaced at the counter by other species of fish.
“The Spanish are fond of seafood and they have a wide variety to choose from. At the beginning of 2016 salmon enjoyed a large share of seafood counters. As prices have risen, this share has reduced, in favor of other seafood products,” said Hilde Gunn Osmundsvag, fisheries delegate to Spain with NSC. High salmon prices have contributed to a greater proportion of packaged or processed salmon being exported to Europe. The portion size is smaller with a higher consumer price tag.
“We see examples of products from fresh salmon in Germany that have risen by nearly 30% since October 2016. Prices have been as high as NOK 300/kg for pre-packaged salmon. Meanwhile, price increases in several markets have not yet been fully passed on to consumers,” said NSC salmon analyst Paul Aandal. Salmon exports to Europe may be in retreat, but there is still strong demand for salmon in the global market. Exports to the US increased by 1,045t last month compared with January 2016.
“Norwegian salmon is strengthening its position in the US and taking market share in a growing market. The market volume has increased from 12% in 2015 to 13% in 2016. In the United States, new salmon products have been launched in cooperation with the major supermarket chains,” said Egil Ove Sundheim, NSC’s delegate in the US.
“This has contributed to a 30% increase in export volumes, while the value of exports has increased by NOK 155m compared to January 2016. At the same time, the limited volume of salmon available has created an unstable market. There is great uncertainty about inflationary pressures,” said Sundheim.
For trout, export sales from Norway dropped 3,500t to 2,600t, valued at NOK 201m, down 32% y-o-y. Japan, Thailand and Belarus were the biggest markets for trout in January.
In January, Norway exported a total 170,000t of seafood, valued at NOK 7.6bn. This is a decrease by volume of 11%, while across all categories, this represents a net increase of NOK 891m, or 13%, y-o-y.
