Rising spot price, but full stop on fixed price contracts after the tax shock

High slaughter volumes and ditto activity in the spot market.

“It’s come up a few kroner already”, says an exporter about next week’s salmon price.

“As of now, it seems that we end up at NOK 62-63 (EUR 5.9-6.0) for 3-4, NOK 63-64 (EUR 6.0-6.1) for 4-5 and NOK 64-65 (EUR 6.1-6.2) for 5-6. 6+ is a bit depending on where you manage to place it. For our part, we are talking NOK 1-2 more compared to 5-6 kg. This week, by the way, there has been a full stop to China, so it hasn’t been too easy, because there is far too much of it (big fish – editor’s note).”[factbox]

Heavier fish
“We are in for a few weeks with a lot of slaughter volume, and I see that the average weights are up. There is a lot of 5+ in the market,” says a buyer to SalmonBusiness.

He refers to farmgate prices around EUR 5.9 for 3-4 kg and EUR 6.4 for 4+ kg.

All industry sources point to a price increase on Friday.

“I believe it’s five kroner up, but not on 5+. It seems to flatten out more. It is a 4+ price. It rises most on the small sizes,” says a trader.

He refers to the following salmon prices (for farmers):

  • 3-4 kg NOK 64 (EUR 6.1)
  • 4-5 kg ​​NOK 65 (EUR 6.2)
  • 5-6 kg NOK 66 (EUR 6.3)

“You don’t get paid more in the 5-6 and 6+ market than 4-5. The fish has gotten so much bigger. Actually, it’s a flat price of 4+.”

“Obviously, when you grow 300 grams a week, you get a surplus on large fish. But it’s five kroner up. The price is reflected in the market. And that’s okay.”

He adds that contracts have come to a complete halt following the Norwegian government’s tax shock earlier this week.

“We have canceled all long contracts. We have withdrawn all offers. Completely out of the question with everything on a fixed price. And it doesn’t just apply to us. We can say that right away. It is far too unpredictable,” he says, and points to the following illustrative example: “If we buy at, for example, NOK 80, and the spot price is NOK 120, the fish farmers have to pay tax for NOK 120.”


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