The value of Norway’s farmed Atlantic salmon exports in the first half (1H) of 2013 reached NOK 17.4 billion (USD 2.8 billion, EUR 2.2 billion), a record figure for the period, but demand has been waning in France — the product’s No.1 market.
Exports in 1H 2013 were 25 percent or NOK 3.4 billion (USD 565.3 million, EUR 432.6 million) higher than in the corresponding period of last year. For the same period, the volume of exports dropped 7 percent to 431,000 metric tons (MT).
The Norwegian Seafood Council (NSC) confirms a fall in Norwegian salmon production combined with strong growth in demand has resulted in increased prices for the country’s salmon. In 1H 2013, the average price of fresh Norwegian salmon increased by NOK 11.11 (USD 1.83, EUR 1.40) per kilogram (kg) to NOK 39.05 (USD 6.44, EUR 4.93).
According to the NSC, fresh salmon demand is at a record high thanks to the launch of new products and the expansion in new markets and new consumer channels. Furthermore, the low prices that had prevailed over the past two years attracted new consumers to the product.
The EU remains the No.1 destination for Norwegian salmon, accounting for 69 percent of the exported volume in 1H 2013, which is 4 percent higher than a year ago. However, in France, which is the single biggest market in the bloc, imports fell 6 percent to 60,000 MT.
This trend reflects a growing French market backlash against soaring prices for fresh salmon, according to one importer. In recent months, raw material import prices have been between 35 and 40 percent higher than a year ago, and with retailers reluctant to accept higher prices only slim margins are possible. Therefore importers have looked to other, more competitively priced products, says the importer.
Last year, French salmon imports totaled EUR 832 million (USD 1.1 billion). Some 70 percent of this figure was of Norwegian origin but the importer expects the high prices to affect this year’s total.
Fresh cod from Norway has been the biggest beneficiary to date. In fact, the NSC says cod (from all sources) has overtaken salmon as the most popular product in French households. Together, cod and salmon accounted for 40 percent of fresh fish sales in 1H 2013 with a 21 percent and 19 percent split, respectively.
With an increase expected in the total allowable catch of Barents Sea cod next year and Norwegian salmon production forecast to fall by around 5 percent this year as a result of lower water temperatures and biomass restrictions, the competition between the two species is likely to become even more intense.
In the short term, Norwegian salmon prices traditionally dip to their lowest levels between August and October but analysts have forecast they will still be between NOK 10 (USD 1.65, EUR 1.26) and NOK 15 (USD 2.47, EUR 1.89) per kg higher than they were in the corresponding months of last year.
