A drop of 57 per cent since the turn of April/May. It doesn’t stop today.
“We have purchases of NOK 51-52 (EUR 5.3-5.4) for 3-4 kg, NOK 52-53 (EUR 5.4-5.5) for 4-5 kg, NOK 54-55 (EUR 5.6-5.7) for 5-6 kg as it stands now. There is a lot of fish, and then there are problems with obtaining freezer packaging. There are probably many people who would like to freeze more than take it out on the spot market,” says a buyer to SalmonBusiness.[factbox]
The market is characterized by high activity.
“There is a lot of volume. Extreme volume. And then there is still a bit of hibernation mode in Europe, it will take some time before they can cut more fish. They (the processing industry – editor’s note) have a different holiday arrangement than we have here. From next week or the week after, they will have more capacity,” he hopes.
“And they have had empty freezers all over the place, so I expect they will freeze a bit – given that they get hold of cardboard packaging,” he adds.
Saying down
“The Poles, the toughest on price, offer NOK 50, 51 and 52 (for 3-6 kilos), they tell us. Other markets say NOK 54, 54.50 and 56. 6+ is not set, but we hear NOK 60+,” says a fish farmer.
“We will probably go out with NOK 55, 57 and 59, but we are aware that it is high,” he adds.
Regardless; salmon prices fall – for the fifth week in a row.
“It slides down. When the day is over, I’m guessing it will end up around NOK 55 (EUR 5.7). It is clear that 3-4 kg will be somewhat lower,” says an exporter.
“There is talk of more fish next week. Harvesting of MAB (maximum allowed biomass), lice and ISA (infectious salmon anemia). It may well continue a little longer. Often when it has gone very high, it goes quite low. And then we have to know that the krone is strengthening and the euro is weak. So there are several factors,” he says.
“That’s the price range I hear and we experience,” says another exporter. “The only question is the volume. There will be a low price difference, a krone between the sizes, that explains the move.”
Deficit on transport
Other exporters report demanding logistics.
“It’s ugly. It’s been an ugly week. The customers say they cannot put in stock – electricity prices can reach ten kroner (EUR 1) after all. Suddenly it can cost you 15 kroner (EUR 1.5) per kilo to store fish for six months. And the logistics are difficult. We struggle with trucks. Extremely low availability of trucks. Big deficit on transport. And it will get worse,” says an exporter.
He refers to the following farmgate prices for next week:
- 3-4 kg NOK 50-52 (EUR 5.2-5.4)
- 4-5 kg NOK 53 (EUR 5.5)
- 5-6 kg NOK 55 (EUR 5.7)
“The euro contributes negatively. It is 9.65 (against NOK), the dollar is worth more now,” he says and points to the severe energy problems in Europe as a possible explanation.
“And then we have packaging problems, not just us, but also out in Europe.”
