Norway’s Atlantic salmon farming industry continues to enjoy a purple patch thanks to sustained high prices. In 2013, the Scandinavian country’s salmon exports achieved a record value of NOK 39.8 billion (USD 6.7 billion, EUR 4.8 billion), which was 35 percent higher than the previous year. This total was reached with 960,000 metric tons (MT) of products, a drop of 3.5 percent compared with 2012.
Last year, the average price for fresh whole Norwegian salmon was NOK 39.74 (USD 6.67, EUR 4.80) per kilogram (kg), which was 44 percent higher than the average for 2012. As a result, most of the leading producers reported very strong financial results, and in many cases new records were set.
Their fortunes have continued into 2014 with the Norwegian Seafood Council (NSC) confirming that the country had recorded export values in both January and February of NOK 3.7 billion (USD 620.7 million, EUR 446.7 million) and NOK 3.3 billion (USD 553.5 million, EUR 398.4 million), respectively. Again, these results were achieved by extremely high average prices of NOK 48.90 (USD 8.20, EUR 5.90) in January and NOK 47.55 (USD 7.98, EUR 5.74) in February.
The EU is the most important market for Norwegian salmon, accounting for 651,000 MT of its exports last year. Within the bloc, France is the main importer. However, this market has reacted more than most to the high price of salmon and imported 116,940 MT of Norwegian salmon last year, 7 percent less than in 2012. But while its volumes are down, the value of this market still increased by 30 percent.
This trend has continued into this year with the country importing 9,222 MT and 7,832 MT of Norwegian salmon in January and February, respectively. In the corresponding months of 2013, it imported 9,954 MT and 9,053 MT, respectively. The average price for French imports in February was EUR 6 (USD 8.34), compared with EUR 5.21 (USD 7.25) in the corresponding month of 2013.
Across the English Channel, the U.K. market has opened the door wider to Norwegian salmon. It imported 43,890 MT of the product last year, representing a 19 percent increase over 2012. At the same time, the NSC confirmed that the average export price to the market had increased by 24 percent.
These growth trends have continued into this year with the United Kingdom importing 4,706 MT and 4,669 MT of Norwegian salmon in January and February, respectively. In the corresponding months of 2012, the market imported 3,955 MT and 3,804 MT, respectively. At the same time, the average price for U.K. imports increased from EUR 4.48 (USD 6.23) in February 2013 to EUR 5.59 (USD 7.77) in February 2014.
The United Kingdom’s increased appetite for Norwegian salmon is partly attributed to depleted domestic production last year, which at around 152,500 MT was 10,000 MT less than in 2012. This shortfall was due to a series of disease outbreaks and production stoppages. Scottish farms are also sending more product overseas. For example, its exports to the United States increased in value by 30 percent to GBP 200 million (USD 332.5 million, EUR 239 million) last year. China has also become another lucrative market for Scottish salmon with exports now valued at GBP 20 (USD 33.3 million, EUR 23.9 million) annually.
In line with the soaring demand, Scottish authorities want to ramp up the country’s salmon production to 210,000 MT by 2020.
From a global perspective and barring any production disasters, buyers shouldn’t anticipate any dramatic change in the sector this year. With only minimal salmon production growth expected and a total global harvest of less than 2.1 million MT, analysts anticipate the average market price will rise to NOK 40 (USD 6.71, EUR 4.83) for both this year and 2015. These analysts now value the global market for Atlantic salmon at around NOK 70 billion (USD 11.7 billion, EUR 8.4 billion).
