Article in Aftenoosten, Norway – translated by Google
Now the salmon dinner is getting more expensive
After years of strong growth in the global production of salmon, it is almost a full stop in 2013 and 2014. It makes salmon dinner more expensive and sends salmon share wriggling into the sky.
Øystein Kløvstad Langenberg Published: 12.jan. 2013 5:45 p.m.
– We have put behind us two years of strong growth in salmon production, but now it looks completely different. It is not certain that we get growth at all. It provides the opportunity for a healthier future price trends, says John Binding, CEO of Norway Royal Salmon.
A “healthier price trend” means higher prices for kg salmon seafood language. In recent years the price has hovered around 25 NOK per. kg, after a major fall in spring 2011.
Strong growth in the global production of salmon gets much of the blame. In 2011 and 2012 it increased by respectively 12 and 20 percent.
– Actually, it’s surprising that prices have held up as well as they have done in recent years. They have been higher than many in the industry feared, says Knut Ivar Hill, salmon analyst at DNB Markets.
More expensive in the store
Now it appears that the price of salmon is again on the rise. Last week, the price of salmon exchange Fishpool 31.95 kroner. kg.
– Salmon is gaining new international markets, and we believe demand will continue to increase. Meanwhile, supply is only growing slightly. Therefore, we see that prices are on the rise, and we believe they will continue to rise in coming years, says Bakken.
Grieg Seafood (155,1 %)
Norway Royal Salmon (99,0 %)
Marine Harvest (77,5 %)
Lerøy Seafood (67,1 %)
SalMar (56,9 %)
Bakkafrost (49,7 %)
Copeinca (37,83 %)
Morpol (34,07 %)
Read also: Grooved giant growth in seafood
– Norway stands on the threshold of a new haveventyr, said Fisheries and Coastal Affairs Lisbeth Berg-Hansen.
The term also salmon in the store will be more expensive.
– It takes like half a year before customers notice changes in salmon prices in the shops. 30 to 35 NOK a kilo is a more reasonable level than we had, but even we in the industry are hoping for record prices over time. It can affect demand globally, says Binding of Norway Royal Salmon.
Seafood companies have risen sharply on the Stock Exchange over the last year on expectations of higher prices. Overall, they have had an increase of around 20 billion NOK – an increase of 47 percent. Exchange has by comparison only risen by 16 percent.
Grieg Seafood tops the list. The stock’s value has increased by 155 percent over the past 12 months. Furthermore, the list included Norway Royal Salmon with a growth of 99 percent.
Salmon giant Marine Harvest has risen by 78 percent and is now the 15th largest listed company with a market value of 19 billion NOK.
The main shareholder of the company, many billionaire John Fredriksen, has earned around 1.6 billion on the rise over the past year. – We still believe in the future growth in salmon stocks, but would probably not double again, Bakken.
Seafood is considered the second most important export, accounting last year for around 6 percent of total exports. What happens to the salmon production and prices longer term is unclear. Among other things, it depends on whether the Norwegian authorities will open up additional licenses.
In 2013 comes the 45 new green licenses that are intended to stimulate the development of new and more environmentally friendly solutions for the industry. These will increase the Norwegian production capacity by around 5 percent.
– We begin to approach capacity ceiling in Norway, given current regulations. Furthermore, global growth will depend on whether the authorities in Norway and Chile open for it, says Bakken. (Largest customer for Norwegian seafood is Russia)
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