OSLO, Nov 24 (Reuters) - The price of Norway’s farmed salmon is expected to drop to a range of 40-42 Norwegian crowns per kilo next week for deliveries in Oslo, down from a two-year low 43-44 crowns in the current week, industry sources told Reuters on Friday.
“We have not been trading yet but we hear people in the market talk about 40-42 crowns per kilo. There’s too much salmon compared to demand, it’s a little bit depressing,” said one salmon producer who declined to be named.
An exporter confirmed prices were dropping.
“I suppose prices end at 42 crowns in Oslo compared to 43 crowns this week,” the exporter said.
He repeated his view that prices would drop below 40 crowns before Christmas, which normally is a peak season for salmon.
“The producers have stretched maximum allowed biomass and they are forced to slaughter more fish. Supply is higher than demand and for the first time in two years customers are deciding the prices,” the exporter added.
Salmon prices peaked at around 80 crowns per kilo in early January at a time when supply constraints supported prices, but have since fallen as volumes grew.
Norway is the world’s top salmon exporter, and the share price of listed farming companies depends heavily on changes in the price of fish.
Average production costs for whole fish, including the cost of harvesting, rose by 13 percent to 34.29 crowns per kilo in 2016, according to data from the Norwegian Directorate of Fisheries.
Leading Norwegian producers include Marine Harvest, Salmar , Leroy Seafood, Grieg Seafood and Norway Royal Salmon. (Reporting by Ole Petter Skonnord, editing by Terje Solsvik)