Since peaking at an all-time high of NOK 125.0/kg in late-April 2022, the Norwegian farmed salmon price (3-6kg, fish pool index) fell by NOK 29.4/kg (-23.5%) during the ensuing 10-week period to NOK 95.6/kg on 6th July 2022. Robust farming activities and a strong harvest contributed towards the downward momentum. Additionally, Chilean salmon exporters, buoyed by plentiful supply, are increasingly targeting buyers outside of their traditional markets in North America. This is intensifying the price competition for market share in Europe, Norway’s primary salmon market.
Comparatively weaker European demand caused by the steep price escalation seen during Jan-Apr ’22 is another factor weighing on European salmon prices. Meanwhile, the COVID-19 related lockdowns in China also implies a higher proportion of Norwegian salmon being redirected to Europe, further increasing the regional surplus. The NOK appreciated by 1.6% against the EUR during the four-weeks ending 13th July 2022, which may also have contributed to the weaker salmon prices, as over half of Norwegian salmon sold to Europe is in EUR. Thus, EUR-denominated sales lose value when converted into Norwegian currency.