Further growth is expected for Norwegian salmon exports
Norway exported 556,000 tonnes of salmon in the first six months of this year with a value of NOK 32.6 billion.
According to the Norwegian Seafood Council's figures, volumes of exported salmon rose by 7%, while the increase in value 4%, or NOK 1.1 billion, compared with the first half of 2017.
Very strong value growth was witnessed in particular in the second quarter of this year, up to 10%. In the first quarter, there has actually been a decrease in value of 2%.
“Several factors have contributed positively to this record half-year. Currency is one of them. The Norwegian kroner depreciated on average by 5% against the euro, but against the US dollar, the kroner increased by about 7%. Since the EU territories account for two-thirds of Norwegian salmon, Norway´s export results remain positive”, explains Paul T. Aandahl, Analyst with the Norwegian Seafood Council.
The currency situation made it relatively more favorable to export to the Euro markets compared with dollar markets.
"Both volume and price varied greatly in H1. In volume terms, there was strong growth in January and June, leading to a lower price than last year. It was therefore perhaps surprising that the month of May had strong volume growth with rising prices”, says Aandahl.
Aandahl further considers that in the second half of this year salmon shipments will continue to increase in value thanks to a positive currency situation for the Norwegian kroner.
"In terms of currency, I expect the same strengths in the second half of the year as in the first. That means that the help we have had with respect to the EU markets will disappear while the "dollar markets" are expected to increase compared to the first half of the year. This, along with stable production in Chile, will enable Norway to strengthen its market share in the US and Asia in the second half of the year compared with the first half. With the disappearance of trade barriers with China, this trend will be accelerated”, Aandahl remarks.
In addition. Aandahl considers that the Norwegian salmon will not be in direct competition with Chilean salmon. Furthermore, there is a strong possibility that the increased demand for salmon in Russia will reduce the supply of salmon from Chile and the Faroe Islands to other markets. This means a good opportunity for Norway to sell more.
"Overall, I expect the current value growth to continue. This is also supported by the Norwegian Seafood Council scenario modeling, which projects 4% value growth to continue into the second half of the year”, Aandahl concluded.
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