The conventional salmon farming sector is likely to see continued healthy earnings says Pareto Securities analyst.
The salmon market is poised for a period of high demand and limited supply growth, maintaining high spot prices in the coming years, according to seafood equity analyst Sander Lie.
“The market balance for salmon is looking tighter and tighter, with low supply growth and the demand showing signs of resilience despite historically high salmon prices”, said the Pareto Securities analyst, who presented at the North Atlantic Seafood Forum in Bergen last week.
In his presentation, Lie pointed to a market where technological advancements, particularly in land-based farming, are becoming increasingly significant.
While these new technologies are nearing their first major harvests or ‘proof of concept’ stages, their volumes are not yet expected to significantly alter the market balance, according to Lie.
The conventional salmon farming sector is likely to see continued healthy earnings, with an uptick anticipated across most companies as they enter the new year. The industry has been adapting to challenging conditions across key regions, raising the importance of fish biology, welfare, and sustainability – factors that are now prioritized by all leading companies in the sector.
Additionally, the industry appears to be emerging from its most severe political challenges, with more clarity around taxation expected in the near future. This development, coupled with the current market dynamics, is fostering a more positive sentiment within the sector.
