Salmon supplies extremely low due to diseases in Chile
According to the Salmon Market Report elaborated by the fishery trade expert at the Food and Agriculture Organization (FAO), Audun Lem, the high prices are creating problems for processors in particular but retailers are also looking for alternatives, including Coho salmon and Rainbow trout. The situation is expected to remain tight at least until the new Norwegian production comes to market during the summer months, but for any significant increase in supply, buyers will have to wait until Chile has overcome its production problems, which is unlikely to be before 2011 or 2012.
Meanwhile, Norway, the largest producer and exporter of salmon, has been the main benefiter of Chile’s production problems, although the many Norwegian producers operating in Chile have also been hurt by the same problems. And with production problems now in Norway as well, Norway’s total output for 2010 looks set to be below 2009 levels. The reason behind Norway’s surprising fall in output is twofold, one is the impact of sea lice, which has hurt a number of producers, and the other is an exceedingly harsh Norwegian winter causing water temperatures to remain much lower than normal, effectively impeding salmon growth rates. As a result, the 2010 Norwegian harvest is late resulting in markets being undersupplied. The situation will improve from June onwards as the new generation reaches market size.
Norway’s 2009 production and exports set new records with export volumes up 15% but values jumping a massive 33% from 2008. The fillet market in particular was especially good as Norwegian producers rushed to fill the gap in the US market created by the shortfall in Chile’s supply.
71% of Norway’s export volumes and 70% of values are to the EU with France, Poland, Denmark and the UK as the largest destinations. Non-EU markets such as Russia, the USA and Japan all showed growth in imports from Norway, mainly thanks to the shortfall in Chilean supply. Export growth to the US in particular was impressive with 300% increases from 2008.
