Farmed Atlantic salmon prices in the first-quarter of this year increased to the levels seen towards the end of 2017 in all major markets, although they remained lower than the record highs seen a year previously, according to Marine Harvest.
In its Q1 2018 trading statement, the salmon producer stated that in local currencies, the average price paid for salmon in Europe in Q1 2018 decreased by 14.1 percent year-on-year to EUR 6.25 (USD 7.35) per kg, while the prices in Miami (USD 6.02, EUR 5.12) and Seattle (USD 3.69, EUR 3.14) fell by 17.2 percent and 8.3 percent respectively.
The global salmon harvest amounted to 519,400 metric tons (MT) in the last quarter, an increase of 10.5 percent year-on-year, with the supply from Norway increasing by a “lower than expected” 5.6 percent to 263,300 MT, said Marine Harvest. In the same period, the volumes from Chile (153,400 MT), North America (30,800 MT), the Faroe Islands (16,500 MT), Australia (13,200 MT) and Ireland (3,500 MT) increased by 29.9 percent, 2 percent, 5.8 percent, 6.5 percent and 45.8 percent year-on-year respectively.
There was, however, a reduced volume from Scotland (31,100 MT, down 13.1 percent), which Marine Harvest attributed to a lower biomass as well as lower seawater temperatures that have reduced biomass growth.
The company said modest growth in Norway’s production was down to the cold winter and lower than expected sea temperatures, while feed sales had declined by 3 percent year-on-year.
Meanwhile, Norway’s biomass has declined in recent months. At the end of 2017, it was up 10 percent year-on-year but has gradually declined to a level of 6 percent growth. While this will have an impact on harvest volumes in the months ahead, Marine Harvest highlighted that the harvesting weights continue to recover.
Chile’s increased output was more than expected, but mainly driven by an algal bloom and subsequent early harvests by salmon farmers. These preventative measures were successful, but will lead to reduced harvest in the periods ahead.
Also in the first-quarter, the worldwide consumption of Atlantic salmon increased by 10.6 percent year-on-year to 521,800 MT.
In volume terms, consumption in the EU increased by 6.6 percent in the last quarter to 217,600 MT in response to reduced prices in the fresh category in the major markets of France, Germany and the United Kingdom. At the same time, volumes in the smoked category have generally stabilized at higher retail prices.
Russia also increased its salmon consumption by 51.1 percent as it increased its imports of frozen products from Chile.
U.S. consumption increased by 9.7 percent compared with Q4 2017 to 109,900 MT, driven by growing imports of Chilean. The market’s annual consumption exceeded 400,000 MT for the first time ever, said Marine Harvest.
Consumption in the Asian market (71,100 MT) increased by 14.7 percent.
