Since peaking at an all-time high NOK 121.7/kg in March 2023, the Norwegian salmon price steadily declined over the following months, reaching a 6-month low monthly average of NOK 86.4/kg on 21 June 2023. At NOK 96.4/kg, the monthly average price for June 2023 contracted by NOK 15.4/kg (-13.8%) m-o-m, and by NOK 7.0/kg (-6.7%) y-o-y. Norwegian salmon prices typically dip during the European summer period because of a lull in market activity attributed to buyers taking annual vacations. However, some observers believe that the salmon market is experiencing a more pronounced downturn, caused primarily by the impact of prolonged global inflation.
Salmon is largely perceived as a luxury source of animal protein among European consumers, being more expensive on a per kg basis than popular alternatives, such as poultry, beef or tuna. Global salmon consumption has evidentially waned during the last calendar year, in conjunction with an inflation-led decline in households’ purchasing power. Many analysts believe that this demand destruction has helped Norwegian salmon inventories to recover from the all-time low levels seen in Q1 2023, subsequently weighing on prices.
Notwithstanding, weak European demand for Norwegian salmoon was partially mitigated by comparatively firm exports to China and the US, during June and July. Indeed, Norway increased frozen salmon shipments to US by 2,021 tonnes (+8.2%) y-o-y between 21 June to 5 July 2023, although it remains to be seen whether a sustained rally will ensue.
