W37: Salmon Update

In W37 in the salmon landscape, the Nasdaq Salmon Index reported a slight increase in the average price of Norway-farmed Atlantic salmon to USD 6.66 per kilogram (NOK 71.96/kg) in W36, a 2.19% week-over-week (WoW) increase. Norway exported 25.5 thousand metric tons (mt) of salmon in W36, an increase from 25 thousand mt in the corresponding week in 2022. However, the index reported a 3% drop in the average price over the past four weeks and a 21.2% decline in the average Norwegian salmon price over the past 12 weeks.

During W37, the coho salmon market experienced uncertainty as Chilean production has significantly increased by 25% year-over-year (YoY). This surge in salmon production has led to the suspension of the main purchasing market in Japan. Japanese importers, who suffered losses last season, are reluctant to repeat their unfavorable experience. Furthermore, factors such as exchange rates (JPY to USD) and high cold storage inventory levels in Japan are complicating purchasing decisions. Currently, Chilean producers are offering prices of USD 6.70/kg for Premium 4/6 pounds (lbs) and USD 6.25 to 6.50/kg for Premium 6/9 lbs, CFR at the main port in Asia.

Since 2018, Turkish salmon exports originating from Trabzon, Turkey, have substantially surged, with the volume increasing tenfold, from 1 thousand tons in 2018 to 10.4 thousand tons in 2023. This represents an impressive growth rate of 968% in 5 years. Notably, Trabzon alone contributes to 28% of the total Turkish salmon exports, with 65% directed to the Russian Federation. However, the high demand for Turkish salmon in international markets has posed challenges in meeting this demand. In response, the Eastern Black Sea Exporters Association has proposed the establishment of an Aquaculture Specialized Organized Industrial Zone in Trabzon. This zone would facilitate the production of both fry and salmon and enable the creation of value-added processed products.

The Russian Far East salmon fishing season will end between September 18 and September 24. As of September 5, Pacific salmon production totaled 572 thousand tons, marking a remarkable 250% YoY increase and a 15% rise from 2021. The Kamchatka Peninsula played a pivotal role in this, contributing 487 thousand tons, which represented 85% of the total production. Additionally, the Sakhalin region produced 42.5 thousand tons, while Magadan and Khabarovsk experienced increases of 43% and 14%, respectively.

In Alaska, the statistics report from Alaska Fishing and Hunting revealed that pink salmon production exceeded expectations, reaching 133 million fish, surpassing the anticipated 122 million fish. This resulted in a cumulative salmon production of 170 thousand tons. However, it's important to note that certain processing companies have announced their intention to cease purchasing salmon raw materials starting September 1, leading to a significant drop in production.