2016 bows out on a high
The export price of Norwegian salmon ended 2016 on a new high, with farmers receiving an average of NOK 79.22 (£7.48) per kg.
According to the Nasdaq salmon index the price edged up by 0.6% compared to the previous week.
According to Fishpool, 1,448,370 tonnes of salmon and 92,709 tonnes of trout were exported from Norway in the first 49 weeks of 2016 – down from 1,429,374 and 111,798 tonnes respectively in the same period of 2015.
Looking ahead, Søren Martens, CEO of Fish Pool, told kyst.no that the firm – which trades salmon contracts from its Bergen HQ – has an optimistic outlook for 2017, having traded contracts for the year ahead at an average of NOK 68.80/kg – at NOK 72.80 for the first six months and NOK 64.80 for the second half of the year.
As far as 2016 is concerned, he explained: “Fish Pool had a good year. Many buyers seemed contract prices were too high last year, and said no to contracts. Buyers without hedging suffered heavy losses, and have now become more cautious.”
Over 90,000 tonnes of contracts were traded in 2016, and Martens expects this to increase this year.
“Our biggest contract trade for 2017 has been for 2,416 tonnes, equivalent to 121 full trailers of salmon,” he said.
He thinks that resumption of normal trade relations between China and Norway will help fuel long term demand for Norwegian salmon, but believes it’s difficult to predict the impact this will have on the market in 2017.
“Expectations of increased demand from China and possibly Russia are partially priced into 68.80 contracts for next year,” he explained.
