Salmon prices continue to plunge dramatically as “blood bath” rolls on

Aslak Berge

Businesses are starting to feel set-backs after three weeks of record high prices

In the past two weeks the price of salmon has dropped a further EUR 2.6 per kilo.

“There was a lot of fish last weekend, slaughtered and sold at falling prices. There are still fish that are unsold. The price is down one euro per kilo,” a salmon exporter insider told Salmon Business.

Big decrease
Salmon Business’ industrial sources refer to the following farm gate price level for the most traded weight classes for delivery next week:

3-4 kilos NOK 53-54 (EUR 5.5 – 5.6)
4-5 kilos NOK 53-55 (EUR 5.5 – 5.7)
5+ kilos NOK 57-60 (EUR 5.9 – 6.3)

“Extreme. It’s simply extreme. Salmon trailers are being sold at a big loss. Many of my colleagues have been having a terrible time,” said another exporter.

“Danes, French and Poles have agreements that can be reopened at the price level we have now. But some have bought up so much that they have to cut away before buying new ones,” he added.

“And then we are expecting the market for frozen salmon to wake up again,” he says, looking towards a favourable dollar exchange rate. “We have a lot of customers who want to buy frozen fillets and portions, but we now have weakened stock. For our part, it means that we now get two containers with filet to Israel.”

Spiralling down?
Most of the sources we talked to felt a lot of pressure due to the changing prices. And the frustration was felt amongst all parts of the supply chain as well as customers today.

“By all means, there are still good prices. Everything is relative.” said one insider.

“I have not bought anything, the signals today are on the lower layer of the 50s, at least 3-4,” said a trader. “The price dropped fast. It is not simple to be an exporter, he added, suddenly receiving an e-mail with offer of EUR6 delivered to Northern Europe. At that price that gives me 53 kroner for 5+.”

“First, it fell from 80 (EUR 8.3) to 67 (EUR 7.0) kroner. And then it went from 67 (EUR 8.3) to 55 kroner (EUR 5.7). It has dropped yet again 25 kroner in two weeks. For exporters, it has been a disaster,” he said.


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