OSLO, Feb 2 (Reuters) - The price of Norway’s farmed salmon is expected to drop to 47.5-48 crowns per kilo for deliveries in Oslo next week from about 53 crowns in the current week, industry sources told Reuters on Friday.
“It’s difficult. Prices are down 5 crowns and we are at about 48 crowns per kilo in Oslo,” said an exporter who declined to be named.
A producer confirmed the price drop.
“There are mixed opinions but we expect 47.5 crowns in Oslo. It has been a tough week due to more supply,” the producer said.
Salmon prices peaked at around 80 crowns per kilo in early January of 2017 at a time when supply constraints supported prices, but have since fallen as volumes grew.
Production growth from Norway is expected to be around 9 percent in 2018, the Norwegian Seafood Council predicted in early January.
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)