Norwegian salmon producer Greig Seafood joins Leroy and Austevoll in the battle against lower salmon prices as the company’s profits and earnings drop significantly in the first quarter.
The company posted EBIT in the first quarter of 2012 of NOK 4.9 million, down significantly from NOK 131.5 million during the same time period in 2011. Operating profits dropped to NOK 5 million, compared to NOK 132 million.
However, harvest volume increased by 6,330 tons to 18,209 tons.
The company said there was a strong underlying growth in consumption, driven by greater market activity and lower prices.
“Unusually high seawater temperatures in Norway have resulted in increased production and a rise in global production that was more than anticipated,” Grieg said in a statement. “At the same time, there has been an equally strong increase in demand in several countries. The strong demand-side growth is a consequence of lower salmon prices from the second half of 2011, as well as increased distribution and market penetration in both established and emerging markets, and a generally high level of market activities.”
