Seafood exports in Norway retracted in June 2024 year-on-year (y-o-y), almost entirely on account of weakening Norwegian salmon prices.
As of June 30, the seafood shipment value clocked 12.1 billion kroner ($1.15 billion), a 2.7 billion kroner ($255.7 million) yearly decline. This also marks the first time value decrement has gone above the 2 billion-kroner mark.
The June 30 figures marked an 18% value depreciation y-o-y from the June 2023 value of 9.4 billion kroner ($890.1 million).
Norwegian Salmon Prices Culpable
The blame lies squarely on low salmon prices, as they represent a species that accounts for 70% of Norway’s seafood exports.
According to the Norwegian Seafood Council (NSC)’s CEO, Christian Chramer, fresh salmon lost by maximum 31 kroner ($2.94) a kg in June 2024 y-oy.
In its part, the Nasdaq salmon index average for July 3,2024 registered a weekly export price drop of –7.78%. The index’s monthly change however was quite big at -27% while the 12-month drop was at -45.94%.
As of July 3, 2024, a 1-2 kg wholesale Norwegian salmon traded at 60.99 kroner ($5.78) per kg. This is even as a 2-3 kg fresh specimen cost 67.99 kroner ($6.44) per kg.
Meanwhile, weekly salmon export quantities rose by 1% in end June above the corresponding performance in end June 2023. Nevertheless, the week ending June 30, 2024 saw a 4% weekly volume fall to 17,501 tonnes from the June 23 week.
The fall in value as well as quantity started in March 2024 after a brave start in January and February. NSC states that the salmon export value had been performing excellently for 36 back-to-back months ending March 2024. So was price, which with the corresponding falling quantities increased by 41% year-on-year in Q1, 2024.
To the rescue however was a profitable trout trade whose quantity and value expanded to 29,839 tonnes in Q1, 2024. While the value was up by 27% y-o-y, the volume upped by an impressive 44%.
In conclusion, the last weeks of Q2, 2024 have proven weak on Norwegian salmon prices and hence plummeted all seafood turnover. All in all, as the figures below illustrate, prices partially depend on rising farm-based salmon production in Norway.
Norway Salmon Statistics
Norway is the world’s biggest exporter of fresh salmon. In 2022, the country commanded a 47.6% global export value share for fresh salmon worth $8.2 billion. The total export volume of the main species, Atlantic salmon, totaled 1,511,100 tonnes, the highest worldwide.
What is Norwegian salmon?
Norwegian salmon is predominantly Atlantic salmon from either the Norwegian Sea, sea cages (pens) and on farms. Farm-raised salmon made its mark as late as 1970 when Norway began its first successful salmon aquaculture project in Trondheim. 30 years later, farmed salmon had propelled total salmon production to 500,000 tonnes and made the country the global commercial leader.
How have market prices of Norwegian salmon performed in 2023 and 2024?
The first half of 2023 saw record salmon prices in Norway, which however began to slip early April. Data by NASDAQ salmon index courtesy shows that gutted salmon cost 101.26 Kroner ($14.66) in week 1 of April. This marked the start of falling prices that year. Similarly, 2024’s prices for whole 2-3 kg whole salmon gradually fell to a July 3 average of 67.99 Kroner ($6.44) per kg. This is despite a 41% yearly rise in per-kg export prices in quarter 1, ending March 2024.