Price vs lice

ooking back at 2014 FAO’s first Globefish European Price Report of the year notes that higher water temperatures in Norway during 2014 caused harvest volumes of farmed Atlantic salmon to rise significantly – and prices to drop equally significantly – compared with 2013.

“Combined with the effects of the Russian ban, this relative surplus pushed prices down in the last quarter of 2014 compared with the same period in 2013. In particular, the sudden drop in early December brought temporary turmoil to the markets,” the report observes.

Despite this, however, the report also suggests that 2014 was a good year for both Norwegian and Scottish producers.

“From an objective perspective, however, 2014 was undoubtedly a good year for the industry and the future remains bright. Helped by significant depreciation of the Krone, Norwegian exporters directed substantially more fish to almost all EU destinations, with the notable exception of France.

“In fact, 2014 was a record year in terms of export revenue, with the Norwegian Seafood Council (NSC) putting the figure at NOK 43.9 billion with an average export price of NOK 41/kg for fresh whole Atlantics. The EU absorbed an additional 11% of Norwegian salmon this year compared with 2013, while the US increased its imports by 9000 tonnes, representing a 47% increase. Meanwhile, the UK salmon industry is booming on the back of strong demand from the US and Chinese markets, and a steady shift in French preferences toward Scottish farmed salmon,” the report’s authors argue.

Looking ahead to 2015, the report predicts price increases, but also warns that producers are likely to suffer from the continuation of the Russian embargo, as well as a projected rise in both feed costs and lice levels.