The total supply of farmed Atlantic salmon fell by 9.1 percent or 57,100 metric tons (MT) year-on-year to 517,900 MT in the fourth-quarter of last year with only Canada increasing its harvest in the period, according to new figures issued by the Faroe Islands producer Bakkafrost.
Presenting the company’s fourth-quarter 2016 results, Bakkafrost estimated that the supply from Norway decreased 6.5 percent year-on-year to 289,500 MT in the quarter, while Chile’s production dropped 23.7 percent to 115,700 MT and Scotland’s harvest fell 8.8 percent to 37,200 MT. Canada, meanwhile, achieved 1.1 percent growth with 31,700 MT.
For the full year 2016, the global supply totaled 1,992,000 MT of salmon, which was down 4.2 percent or 88,100 MT compared with the previous 12 months.
The EU was the No.1 market for the species last year, accounting for sales of 948,200 MT (down 3 percent), followed by the United States with 371,700 MT (1 percent less) and Latin America with 137,200 MT (down 14 percent). Only Japan increased its volume with 58,300 MT, up 7 percent.
Bakkafrost added that the global supply is expected to fall 9 percent year-on-year in Q1 2017 but that the decreasing supply trend should come to an end in the following quarter with both Europe and the Americas increasing their production.
Thanks to high salmon prices, Bakkafrost delivered total operational earnings before interest and taxes (EBIT) of DKK 349.6 million (USD 49.8 million, EUR 47 million) in Q4 2016, up from DKK 257 million (USD 36.6 million, EUR 34.6 million) in the corresponding period of the previous year. For the full year 2016, Bakkafrost achieved an operational EBIT of DKK 1.2 billion (USD 171 million, EUR 161.4 million), up from DKK 1 billion (USD 142.5 million, EUR 134.5 million).
Bakkafrost harvested 12,940 MT of salmon (gutted weight) in the last quarter, down from 13,675 MT in Q4 2015. For the full year 2016, the company harvested 47,542 MT, down from 50,565 MT in 2015.
It expects to harvest 55,500 MT in 2017.
