Salmon prices continue to slide01 July, 2011 –
JUST two months ago a kilo of Norwegian salmon was fetching a near record 45 kroners a kilo (£5.2 sterling) – but this week the price had sunk to around 25 kroners a kilo ( £2.9) – a slide of almost 50 per cent compared with the all time high around Easter.
And most of the forecasts are that prices will continue to slide for the next few months at least. Over-supply and over production, coupled with economic woes in many European countries are largely to blame for the dramatic turn-around. While many people expected prices to fall back a little after Easter, the speed and scale of the slide has taken everyone by surprise.
Many restaurants and stores, put off by the high prices of just a few weeks ago, have been promoting other types of fish and this has had an impact on demand throughout the UK and Europe. With members of the public becoming very cost conscious, they have been put off by the high prices of salmon in the shops.
Another factor influencing prices is Chile. The Chile salmon industry is back in business and production increasing following the fish disease which all but devastated their salmon industry a couple of years ago, and they are again supply the US market
Analysts are not expecting a recovery in prices for some months yet. Some Norwegian producers have told the business newspaper Finansavisen that they will start freezing the fish in the hope that prices will improve towards the end of the year and when demand is at its peak because of the festive season.
All this is having an adverse affect on the share prices of a number of Norwegian salmon and seafood companies. But such is the brittle statement of the market, it would not take much for prices to start moving up again.