Good growing conditions, including progress in the battle against sea lice, plus a recovery of the industry in Chile and an increase in Canadian production, are also increasing supply and helping push prices down.
The bank said: “The salmon spot prices have dropped from NOK 69 in week 26 to an estimated NOK 50 in week 33.”
It added: “This week there has been plentiful unsold fish in the market all week, importers have lost money in a negative market and they know that more volumes are coming in the weeks to come. Price level now is par with the 2016 bottom, four weeks earlier and at lower export volumes.
“The price drop is driven by volume ramp up as favourable growth conditions result in more salmon available for the markets compared to the situation one year ago. The prices in the US market have also trended down as Chilean harvesting has increased substantially in the past months and Canada is going from negative year on year growth to double digit growth as from August. Paired with a weaker US dollar, this implies more challenging market conditions and less attractive to bring volumes from Norway and UK to USA.”
The report said updated cost figures from the Norwegian Fisheries Directorate imply a higher than expected cost level for the Norwegian industry. Cost of production rose NOK 4 per kilo in 2016, bringing total cost up to NOK 37.8 per kilo, which is close to the current levels in Chile. “We should expect improvement during 2017, but most likely not materialising in the cost of harvested fish until Q4 and further into 2018.”
Published: 11/08/2017 at 3:36 pm