Higher demand in Russia and in other markets is contributing to strong Norwegian Atlantic salmon prices, while plentiful supply from Chile is keeping prices from that region soft.
Norwegian and Scottish salmon suppliers are benefitting from increased demand from Russia, Germany and Spain, industry sources say. Russia’s import ban is not affecting Norwegian and Scottish salmon as much as initially predicted, because Russian buyers are simply importing through countries cleared for trade.
“Russia sales have gone up. They have figured out how to get through the Faroe Islands, Belarus and other areas,” said a Northwest U.S. distributor. “There is a lot of demand for European fish, so there will be some firmness in the Scottish and European markets.”
Demand has also grown for Norwegian salmon in certain European countries, according to Paul T. Aandahl, market analyst with the Norwegian Seafood Council. “We are seeing good demand in Germany, especially for fresh salmon. There are new products on the market and new distribution in Harvest Country stores. Spain is also going very well,” he said, adding that Poland and France remain the largest buyers of Norwegian salmon.
While U.S. buyers report steady to stronger prices on European salmon in November, exports and prices were softer in October, compared to October 2013.
Norway salmon exports were worth NOK 4 billion (USD 590,474; EUR 475,320) in October, a drop of 3 percent compared to October 2013, according to the Norwegian Seafood Council. The average price for whole, fresh Norwegian salmon in the month of October was NOK 35.82 (USD 5.28; EUR 4.25) per kilogram (kg) compared with NOK 37.55 (USD 5.54; EUR 4.46) per kg in October 2013.
European salmon pricing is still fairly even at under USD 4 (EUR 3.18) per pound wholesale for whole fish, the Northwest U.S. distributor said. Northeast buyers report paying between USD 5.80 (EUR 4.62) and 6.10 (EUR 4.85) per pound for fresh fillets from Europe.
Meanwhile, Chilean salmon prices have been soft, due to a plentiful spring yield there and a bountiful wild salmon season. “Chile has their summer coming up now. They had more production this year than had been expected,” said a Northeast U.S. supplier of frozen salmon fillets and portions.
As a result, “Chile prices keep getting softer,” the Northwest U.S. distributor said. “Demand hasn’t caught up with production and people are just getting off of wild salmon.” Some distributors report paying between USD 3.60 (EUR 2.87) and USD 3.70 (EUR 2.95) per pound for 2-3 pound fillets from Chile.
However, Chilean prices could improve with increased U.S. holiday demand and expected lower output in 2015.
And Norwegian prices salmon prices are expected to stay strong through at least early next year. “Anyone who is going to set up contract production in Norway over the next three to five months will have higher costs,” the Northeast U.S. supplier said, predicting higher prices for the first half of 2015.
