Norwegian salmon prices are falling in all weight categories, with the largest fish seeing the biggest declines.
Salmon prices are being dragged down by the widespread availability of low-quality fish production, suppliers said. IntraFish on Friday.
The largest fish of 6-plus kilos has seen a sharp drop in prices, an exporter said IntraFish.
“What we see is that 6-plus [fish] is at best the same price as flat 5 kilos, but it should be down to 3-4 levels,” said the exporter.
He buys from a producer in the north of Norway for NOK 102 (€8.80/$9.60) for 3-4 kilos of fish.
Another southern exporter in Norway reported a similar price drop for larger salmon.
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- Norwegian farmed salmon has been graded by the industry itself, according to a joint industry standard (NBS 10-01) since 1999.
- Classes are superior, ordinary and production. The majority of fish, usually more than 90 percent, are higher. The proportion may vary somewhat from time to time, and country to country.
- There are requirements for fish in each class based on color, spots, wounds, hardness, damage and shape.
- The superior description is “a first-class product with characteristics that make it suitable for all purposes. The product has no significant defects, damage or defects and has a positive overall impression.”
- The lowest quality fish, the production, cannot be exported out of Norway until it is corrected. Its common signs can be sexual maturation, wounds, deformities or treatment errors.
- There is no official or independent third-party that assesses the fish (apart from special cases where the Norwegian Food Safety Authority can stop the export of fish production).
Source: Sources: NBS 10–01 and industry players.
“For big fish, prices were very low last week, and should also drop today, although they are still high. I would bet under NOK 100 (€8.70/$9.40) for 6-plus kilos,” said he.
The exporter noted prices of NOK 100 (€8.70/$9.40) for 3–4 kilo fish, reflecting a weak market for air-freighted salmon in particular.
Dirty market
Currently there is an imbalance between the production of filleted fish in Norway, which competes on a completely different level than the premium class of fish, the exporter said.
Lower-quality salmon are referred to as production fish and must first be processed in Norway before they can be shipped to foreign buyers, although that could change after the European Commission’s trade department, DG Trade, this week announced the ban. with Norway’s exports of low- grade salmon being equivalent to a trade barrier.
Normally, fish production is less than 10 percent of salmon, but in winter the proportion can be higher due to winter injury, among other things. Lesions and unsightly parts are removed for export.
As of mid-February, however, 36.6 percent of all fish were categorized as production fish. The record-high proportion of fish production in the wider market is seen as a problem for the Norwegian industry’s reputation and general pricing.
“No one will buy superior salmon for €10 ($10.90) when you can get a fillet for the same price,” the exporter said. “We can’t fight that until the price for superior comes down.”
He thinks the price should drop by NOK 10 (€0.87/$0.94), at least for premium fish, to bring some balance to prices.
The third exporter agrees. “Prices are down, but certainly not enough to make money. It’s a dirty market with weak demand,” he said.
sources said IntraFish at the following prices next week:
- 3–4 kg: NOK 98 (€8.50/$9.20) two NOK 103 (€8.90/$9.70)
- 4–5 kg: NOK 105 (€9.10/$9.90) two NOK 109 (€9.40/$10.30)
- 5+ kg: NOK 108 (€9.40/$10.20) two NOK 112 (€9.70/$10.60)
