W29: Salmon Update

In W29 in the salmon landscape, the global farmed Atlantic salmon trade has grown significantly in the past two decades, with the industry requiring innovative technology to meet growing demand. Mowi, the world's largest supplier of salmon, believes that Atlantic salmon is a healthy, resource-efficient, and climate-friendly product. Rising demand for sustainable food and public willingness to pay for it make salmon appealing to consumers.

India has reduced its tariffs on Chilean salmon by 15% after Chilean exporters launched a promotional campaign targeting the country. This tariff reduction was confirmed by Chile's National Fisheries and Aquaculture Service (Sernapesca) and the Food Safety and Standards Authority of India (FSSAI), in line with a trade agreement signed in 2006. Chilean salmon exports will gain 15% tariff advantages in India, promoting the industry and boosting Chile's southern macro-zone development and overall salmon sector growth. Chile's National Customs Service reported positive salmon and trout exports in the first half of 2023, with 373.73 thousand tons exported, a 2.1% increase in value and a 2% increase in volume. China remains the fifth largest destination for Chilean salmon exports, with 18.97 thousand tons exported and a value of USD 139 million. China experienced significant growth, with 78% volume and 79% value increase.

In Jun-23, fresh salmon prices in the United States increased by 4.9%, but its overall value dropped by 1.4% to USD 11.46/lbs. Indeed, despite the increase in prices and a slight drop in value, salmon remains highly popular in fresh seafood markets. Its demand has led to impressive sales of USD 1.4 billion during the first half of 2023. Meanwhile, the Alaska fishing season has reached its eight-week mark, with wild salmon catches approaching 2022's pace. In W29, 50% of the projected 48.18 thousand Sockeye salmon catch was achieved, while 29% of the Keta salmon catch was captured. Pink Salmon and Coho Salmon were the only remaining fishers. Pink Salmon caught 2% of the predicted 122.21 thousand fish, while Coho Salmon harvested only 1% of the expected 2.96 thousand fish.

In 2023, New Zealand's king salmon production is expected to increase due to decreased harvest and an increase in aquaculture production. The king salmon farms are focusing on low-temperature aquaculture, leading to a slight increase in production. The King Salmon Company has raised its profit indicators due to robust king salmon production and the expansion of the Ruakaka farm, which now produces 750 metric tons (mt) of king salmon annually. In the W28, Norwegian salmon prices slightly declined by 0.2% to USD 9/kg (NOK 91.01/kg), while last week's Nasdaq Salmon Index showed a 3.36% increase. Also, there is a 0.36% price increase in fresh, head-on gutted Norwegian Atlantic superior salmon prices. Furthermore, Norway exported 17.8 thousand mt of Atlantic salmon in W28, down from 17.9 thousand mt in 2022 and 19.2 thousand mt in W27. The future prices for salmon are showing a downward trend, with July's price at USD 8.8/kg (NOK 89.2/kg), August's at USD 7.2/kg (NOK 73.4/kg), and September at USD 7.13/kg (NOK 72.1/kg).