Balancing the Norwegian Salmon Market: Decline in Prices Signals Industry Recovery

In the past five months, the Norwegian salmon industry faced an unusual challenge due to an abundance of low-quality fish. However, recent reports from the Norwegian salmon market indicate that prices have started to decline as the supply of these "production" fish has decreased.

One exporter projected a slight drop in the price of smaller fish, while another reported that salmon weighing 3 to 6 kg were fetching between 105 and 110 Norwegian kroner (approximately 9.14-9.58 EUR/9.92-10.39 USD). "The price of superior fish is now approaching the price of production fish, so the grey market will disappear," a third exporter stated.

In Norway, farmed salmon is classified into three grades: superior, regular, or production. Production fish refers to any salmon with deformities or injuries, which producers are prohibited from exporting before processing into fillets, a policy aimed at maintaining Norway's reputation for high-quality salmon.

Typically, production fish account for less than 10% of the total, but this proportion can increase during the winter months due to winter ulcers and other issues. In mid-February, a record-high 36.6% of the fish were classified as production, which was seen as a threat to the industry's reputation and overall pricing. This made the past five months exceptionally difficult for exporters.

"We had to accept and deal with the fish we had, but now we have fish that can work," the third exporter said, noting a price drop of 25 Norwegian kroner (approximately 2.17 EUR/2.36 USD).

Another exporter reported purchasing fish for less than 100 Norwegian kroner (approximately 8.70 EUR/9.45 USD) for the first time and expected prices to potentially drop to 80-90 Norwegian kroner (approximately 6.96-7.83 EUR/7.56-8.50 USD) in the coming week or later. This exporter quoted prices for the key 3-6 kg fish ranging from 96 to 101 Norwegian kroner (approximately 8.36-8.79 EUR/9.07-9.54 USD).

A fourth exporter also reported a price decline of around 15-20 Norwegian kroner (approximately 1.30-1.74 EUR/1.41-1.88 USD) across all size classes, with 3-6 kg fish priced between 100 and 105 Norwegian kroner (approximately 8.70-9.14 EUR/9.45-9.92 USD).

These developments suggest that the Norwegian salmon market is regaining balance, with the reduction in low-quality "production" fish supply leading to a decline in prices and a return to more favorable market conditions for exporters.