Farmed Atlantic salmon prices continued to trend upward in key markets through the first-quarter of this year despite a strong increase in supply, according to Mowi.
In its Q1 2019 trading statement, the salmon producer stated that in local currencies, the average price paid for salmon in Europe in Q1 2019 increased by 1.4 percent year-on-year to EUR 6.34 (USD 7.09) per kilogram and by 1.6 percent in Miami to USD 5.20 (EUR 4.65). In the Seattle and Boston/New York markets, prices fell by 4.2 percent and 11.3 percent respectively to USD 3.54 (EUR 3.17) and USD 3.66 (EUR 3.27).
The global salmon harvest amounted to 541,800 metric tons (MT) in the last quarter, an increase of 4.8 percent year-on-year, with the supply from Norway increasing by 2 percent to 266,900 MT. In the same period, the volumes increased from Chile by 158,800 MT (1.7 percent), Scotland by 37,500 MT (24.6 percent), North America by 32,900 MT (6.8 percent), the Faroe Islands by 19,600 MT (21.7 percent), Australia by 13,200 MT(0.8 percent), and Ireland by 3,400 MT (21.4 percent) year-on-year.
Mowi said the growth in Norway’s production was supported by increased feed sales and favorable seawater temperatures, while the biomass has grown from 2 percent to 5 percent year-over-year during the quarter.
The larger harvests in Scotland, the Faroe Islands and North America were in line with guidance, while the volumes from Chile were in the low end of the guidance. However, Mowi added that increased smolt stocking and improved biological performance suggest higher growth going in the South American country.
Also in the first-quarter, the worldwide consumption of Atlantic salmon increased by 4 percent year-on-year to 540,700 MT.
In volume terms, consumption in the E.U. increased by 4.4 percent in the three-month period to 224,100 MT, with the U.K. and Spanish markets continuing to be “favorable.” At the same time, reduced prices have been driving consumption growth in the German market, while the Italy’s increased consumption is mainly led by the sushi segment.
U.S. consumption increased by 2.9 percent compared with Q1 2018. Mowi said the market growth was good as additional shelf space was allotted to seafood and salmon.
Strong growth in the Brazilian market (8.2 percent to 26,500 MT) continued to be driven by the foodservice segment.
Consumption in Asia increased by 2.2 percent year-on-year to 75,300 MT, with consumption growth in China/Hong Kong again mainly being driven by the foodservice segment.
In addition, fast growing retailers are challenging the existing value chain and offer more pre-packed products, while the availability of large fish was good during the quarter which facilitated growth in the Asian market, said Mowi.
