Opinion
W16: Salmon Update
Published Apr 28, 2023
In W16 in the salmon landscape, Canada's Liberal government is squandering its opportunity to be the world's best salmon farming nation by relying on activists instead of science and traditional indigenous knowledge. British Columbia salmon farmers have announced a plan to invest USD 1.4B in innovation, technology, and infrastructure. NHO believes the "ground rent" salmon tax plan should be reviewed by the government for a fresh look. In Norway, Fresh salmon prices have risen after sagging over Easter, with demand and export volume increasing. Industry analysts expect prices to dip this week as the trade heads to the Seafood Expo Global event. Production costs are rising sharply. The Norwegian business employers’ organization NHO believes the "ground rent'' salmon tax plan should be reviewed by the government for a fresh look. Norway exported 22,696T of salmon in W15, 25.5% more than the same week in 2022, and 344KT so far in 2023, 8.7% less than the same period in 2022. Norway exported 35,022T of seafood worth USD 208.9M (NOK 2.2B) to China in Q1 of 2023, making it the sixth-largest market by value for Norwegian seafood. Further, the demand for seafood is easing in Europe and the U.S. due to a recession in consumer behavior. Salmon demand remains robust, while shrimp demand has cooled. Costs are expected to remain high, and the Norwegian government's proposed tax introduces uncertainty. China is the most unpredictable factor, with fears of Covid infection impacting its food service industry. In France, the price of Norwegian salmon has almost doubled in two years due to a global imbalance between supply and demand, particularly in China. Norway has reduced production starts and introduced a new tax, leading to a blockage of the Oslo stock exchange. In France, smoking workshops represent 2.6K direct jobs with a turnover of USD 779M (EUR 705M). In Scotland, the Scottish salmon industry is concerned about the potential impact of plans to close 10% of coastal waters to human activity. Further, Salmon Scotland has warned that HPMAs could put jobs in coastal communities at risk and undermine the government's vision of a blue economy. It has urged the Scottish Government to review how science has been used to establish the policy framework and consider all pressures on the marine environment. A first-of-its-kind offshore salmon aquaculture project proposed for federal waters off New England is prompting a major US fishery council to revise its management plan, offering hope to those looking to establish operations. Russian Salmon proposes a ban on the catch of wild salmon in the White Sea, as salmon stocks are in critical condition and some rivers have already gone to zero. Buyers will not notice the difference. The Russian Federal Agency for Fishery, Rosrybolovstvo, will consider a proposal to ban commercial salmon fishing in the White Sea basin on May 10, 2023. The Association "Russian Salmon" asked Rosrybolovstvo to consider the possibility of a complete ban at the end of February 2023.