W16 Salmon Update: Surging Norwegian Salmon Prices Reflect Strong Market Demand

Published 2024년 4월 26일

In W16 in the salmon landscape, the NSC is focusing on the US market, increasing investments to enhance Norway's seafood export value, reaching USD 15.71 billion in 2023, with salmon exports to the US growing significantly. In Q1-24, Norway's HOG salmon output reached 901 mt, with prices rising notably. Meanwhile, Russia saw an 8.7% YoY increase in total fish catch in 2023, which included salmon. Additionally, Australian seafood companies are targeting the UK market following the implementation of the free trade agreement in May-23, benefiting from tariff removals and expanding product offerings.

Norwegian Seafood Council Focuses on US Market

The Norwegian Seafood Council (NSC) has intensified its focus on the United States (US) market to bolster Norway's seafood export value, marking a significant strategic shift. Historically, European countries have been the primary destination for Norwegian salmon exports, but recent data show a growing trend in salmon exports to the US, reaching 71,113 metric tons (mt) in 2023. The NSC highlighted the organization's unprecedented attention to the US, with increased budgets and record-high investments over the past three years. Despite a notable surge in Norway's seafood export value in 2023, reaching USD 15.71 billion, the growth trajectory slowed in Q1-24 due to currency fluctuations. Although a substantial gap remains between salmon exports to Europe and the US, the US represents one of the top 10 markets for Norwegian seafood by value, with seafood exports to the US totaling USD 1.25 billion in 2023.

Norway's Q1-24 HOG Salmon Production Reached 901 mt and Promising Outlook for Q2-24

Norway's HOG (headed and gutted) salmon output reached 901 mt in Q1-24, with an average weight of 4.6 kilograms(live weight), and 96% of the production met high-quality standards. The selling price during this period was USD 9.86/kg. Meanwhile, HOG salmon production in Q2-24 is anticipated to range between 1,600 to 1,800 mt, with the peak harvest expected in Apr-24 and May-24. Salmon production in Q1-24 saw a notable increase, reaching 2,700 mt, marking a 21% YoY rise compared to Q4-23.

Norwegian Salmon Prices Rise to USD 12.48/kg in W15

During W15, the average price of Norwegian salmon reached USD 12.48/kg, marking a 1.57% week-on-week (WoW) increase from the previous week's price of USD 12.46/kg. Over the past four weeks, average salmon prices have surged by 27.37%. Over the past 12 weeks, they have risen by nearly 41%. Salmon sales were diversified across different weight categories: Salmon weighing between 1 and 2 kg constituted 0.7% of total sales, with an average price of USD 9.52/kg. Salmon in the 2 to 3 kg range constituted 8.63% of total sales, fetching an average price of USD 10.98/kg. Meanwhile, salmon weighing 3 to 4 kg comprised 23.29% of total sales, with an average price of USD 12.36/kg.

Russia's Fish Catch Surged in 2023

Russia's total fish catch reached 5.3 million metric tons (mmt) in 2023, marking an 8.7% year-on-year (YoY) increase. The country's seafood exports are dominated by pollack, constituting approximately 30% of exports to major importing countries such as China, Korea, Japan, and the European Union (EU). Other significant exports include crab, cod, salmon, and herring, which are also popular in these markets. Frozen fish accounted for the largest export volume in 2022, totaling USD 3.97 billion, followed by crustaceans at USD 2.708 billion.

Australian Seafood Thrives in UK Market Post-Free Trade Agreement

Since the May-23 free trade agreement (FTA) implementation between Australia and the United Kingdom (UK), Australian seafood companies have been increasingly targeting the UK market. The removal of tariffs on many Australian seafood exports has positively impacted various product categories, leading to cost savings for importers and suppliers. Moreover, as demand for premium offerings grows among consumers, the variety of Australian products available in the market is expected to expand further.