Norway’s production-grade salmon controversy driving up prices

Published 2024년 4월 22일

Tridge summary

In Norway, a significant portion of the country's salmon output, about one-third, is now classified as 'production-grade' farmed Atlantic salmon, which is subject to strict processing regulations before export to ensure it meets either superior- or ordinary-grade standards. This classification aims to uphold the premium reputation of Norwegian salmon in the global market. However, this practice has led to unusual pricing dynamics, especially noted in Q1 2024 when salmon prices hit record highs. This surge in prices was attributed to a supply shortage of fresh, whole, superior-grade fish, exacerbated by an increase in the export of fresh fillets, which disrupted the market. Despite the intention to protect the industry's reputation, the regulations governing production-grade salmon have sparked criticism due to their impact on market dynamics.

Disclaimer:The above summary was generated by Tridge's proprietary AI model for informational purposes.

Original content

So-called “production-grade” farmed Atlantic salmon is now estimated to account for around one-third of Norway’s total salmon output.In Norway, farmed salmon are classified as either “superior”, “ordinary”, or “production” grade, based on the quality of the fish. Under Norwegian regulations, it’s illegal to export production-grade salmon without first processing it, but after processing, these fillets can be sold as superior- or ordinary-grade. Principally, this law aims to maintain the market reputation of Norwegian salmon as a premium product. Discussing the current drivers of the Atlantic salmon industry in Kontali’s latest Seafood Explained webinar, Kontali Senior Financial Analyst Flip Szczesny said while grading salmon as production fish or “prod-fish” is a practice specific to Norway, it has an effect on the overall salmon market and creates “strange dynamics” in regard to pricing.In Q1 2024, and particularly around Easter, the market saw Norwegian salmon prices hit ...

Source: Seafoodsource