May 5, 2017 / 12:14 PM / 2 years ago

Norway salmon price seen rising to NOK 70-74 per kilo next week

OSLO, May 5 (Reuters) - The price of Norwegian farmed salmon for delivery next week is surging by an estimated 6-10 crowns, to a range of 70-74 crowns per kilo, sources in the fish farming industry told Reuters on Friday.

In the current week, prices for delivery in Oslo have risen by 2-3 crowns to 64-65 crowns per kilo, in line with forecasts made last Friday.

“Prices are surging and are at around 73-74 crowns per kilo (for next week),” said a salmon producer who declined to be named.

“It has been supported by limited availability of fish and a weaker Norwegian crown. Exporters are pushing up prices to meet their obligations,” the producer said.

A fish exporter said he too expected prices to rise, albeit to a slightly more moderate 70-72 crowns per kilo.

“There has been a shortage of fish since Wednesday. This will continue into next week and then we probably will have more fish at the end of the week,” he added.

The exporter said the increase was too big to be sustained and that he expected prices to ease somewhat.

Prices peaked at around 80 crowns per kilo in early January before dropping to 50 crowns, but have since rallied again.

Industry earnings margins are still high by historical standards, despite a sharp rise in production costs in Norway in recent years to around 32-33 crowns per kilo.

Supply constraints are expected to support prices in the first half of 2017 before an expected increase in volumes later in the year, fish farmers including Marine Harvest, Leroey Seafood and Salmar recently said.

Norway is the world’s top salmon exporter, with leading producers including Marine Harvest, Salmar, Leroy Seafood, Grieg Seafood and Norway Royal Salmon. (Reporting by Ole Petter Skonnord, editing by Terje Solsvik)

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