What effect did the Covid-19 have on the salmon industry?

The global salmon sector has felt the impact of Covid-19 all along the supply chain, with production, processing, logistics, and markets all suffering to varying degrees. However, some observers are pointing to the lower prices and shift in focus to retail as an important opportunity that will benefit the sector in the long term.

The ongoing pandemic has introduced a large amount of uncertainty and led to some significant changes at the farm level. Poor market conditions and logistical challenges have seen many producers delay harvesting as long as possible, which means that supply in the first half of 2020 has been tighter than expected. The key markets for exported salmon have been heavily impacted by Covid-19. Market weakness and restrictions on movements affecting seasonal labor in processing plants and aboard fishing vessels are contributing to the reduction in supply.

Any distribution channel that can accommodate the needs of consumers that are conscious of the need to remain socially distant is now accounting for a steadily growing share of the market. The fresh segment, which is of key importance to the salmon sector, is suffering due to soaring logistical costs and a general preference for frozen and prepared foods amidst a general atmosphere of uncertainty. The retail sector saw a slowdown in demand for salmon due to the Covid-19 pandemic, particularly for fresh fillets as well as in the whole fresh fish segment. The impact of Covid-19 is driving some unusual dynamics. Firstly, the closure of foodservice is dragging down the prices of larger fish favored by the restaurant trade, which otherwise command a significant premium.

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Widespread disruption in the salmon sector

Salmon’s upward growth trajectory grinds to a halt over COVID-19