W24: Salmon Update

In W24 in the salmon landscape, the global salmon production is projected to return to normal by 2023, with a 4% increase in 2023 and 2024. However, tax uncertainties, increased research, and aquaculture innovation challenges remain. Chile's exports remain strong, and the US market closely monitors developments affecting major salmon-supplying countries. The US wild salmon sector is uncertain about Russian wild salmon entry, and China's "zero tolerance for COVID" policy could reopen processing facilities. According to data published by the Chilean Salmon Council (CDS), Chile exported approximately 203.5 thousand mt of farmed salmon and trout in Q1 2023. Although there was a 1% YoY decrease in export volume of Chilean salmon, the export value increased by 4.4% to reach over USD 1.76 billion. Fresh Atlantic salmon fillet prices have declined in the North American market, while Chilean fillets are experiencing weakening imports. FOB Miami prices have been adjusted to USD 5.30-5.45/lb for 2/3-pound fillets and USD 5.40-5.55/lb for 3/4-pound fillets.

Norwegian fresh salmon HON experienced a 2.7% decline in W23, reaching USD 10.4/kg. Export volume increased by 1.7%, with a 4% YoY growth in Q3 and Q4 2023. Salmon futures contracts were traded at USD 8.47/kg. Norway faces tax uncertainties, requiring cautious investment decisions. The Scottish salmon industry seeks export opportunities, trade barriers removal, and aquaculture research, development, and innovation challenges. On the other-hand, a coalition consisting of Salmon Scotland and six other seafood organizations has recently initiated a petition at Holyrood, urging the Scottish Government to reconsider its plans for Highly Protected Marine Areas (HPMAs). The coalition emphasizes the importance of adopting an evidence-based approach that takes into account both environmental pressures and the livelihoods of dedicated individuals in Scotland's fishing industry. The petition emphasizes the need for decisions to be grounded in evidence, science, and facts rather than being driven by political pressures.

New Zealand-farmed King salmon has a lower carbon footprint than beef, lamb, and cheese, similar to farmed proteins like eggs, poultry, and oysters. This information is important for sustainable food choices and supports the government's Aquaculture Strategy, aiming to generate USD 3 billion by 2035 and contribute to a low-emission future economy. The NPAFC reported a decline in commercial salmon catches in 2022, marking the second-lowest harvest in history. The combined 2022 North Pacific salmon catch was 354 million fish, weighing 1.6 billion pounds. Pink salmon accounted for 36.5% of the total volume, while sockeye salmon made up 30.3% of the total catch. The sockeye harvest was the second highest recorded, surpassing chum salmon's 30% volume. Lastly, NOAA has formed a task force of 19 experts to create a science plan for Alaska's salmon. The primary goal is to address sustainable management practices and respond to recent declines in the Yukon and Kuskokwim rivers. The task force will work on a comprehensive science plan, identifying areas of limited knowledge, and supporting sustainable salmon management efforts.