News

US market performance key to future of RAS farming, Rabobank

Salmon
United States
Published Mar 11, 2021

Tridge summary

Commercialization of salmon grown in RAS facilities and how they perform in cost and price are two key developments to watch in 2021, says Rabobank. The Dutch bank says this will determine how much capital flows toward them in the future. In its” Global Animal Protein Outlook for 2021” report, it noted that large-scale recirculating aquaculture systems (RAS) facilities that have produced some of their first salmon harvests in the second half of 2020 are expected to scale throughout 2021.

Original content

The report sees 2021 as a year for recovery for animal protein production. It says there’s an opportunity for RAS-based salmon to ease its way into the market, as salmon demand continues to strengthen amid the COVID-19 pandemic. Renewed consumer interest in cooking salmon at home, particularly in the Americas and Europe, saw salmon demand grow between 3 to 4 percent in 2020. Although currently sold at lower price points, salmon is expected to further recover as the food services industry gradually reopens and price expectations starts to lift, says the report. Concurrently, Rabobank foresees salmon supply to expand marginally from 0.5 percent to 2 percent in 2021, much lower than demand growth or historical supply growth. This means the industry will not meet the sustained increase in demand for salmon this year as supply is expected to contract from 8 to 9 percent due reduced smolt production in Chile, which impacts key markets such as the United States, Brazil, and Russia. ...
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