Volatility in Norwegian salmon export market. The Norwegian Seafood Council (NSC) has given its latest update on the export situation during the current Covid-19 pandemic.
NSC update as of 17th April 2020
“Because a number of countries have introduced restrictions that hit the restaurant segment hard, we see shifts towards increased sales of Norwegian seafood in grocery, especially as prepackaged and frozen products in many markets. If we compare exports with Easter week last year (week 16), we see an increase in salmon and cod exports to processing markets such as Poland and the Netherlands. These are markets wish is repackaged into consumer products for sale in retail,” says Paul Aandahl, seafood analyst at the Norwegian Seafood Council.
“There was a 4 per cent decrease in fresh whole salmon exports during the Easter week. We are now seeing major changes in salmon exports between different markets compared to Easter week last year. This shows that there is a lot of volatility in the salmon market as a result of the corona situation,” says Aandahl.
“Exports to the EU fell 4 percent for fresh whole salmon during the Easter week. We see good export numbers to processing markets such as Poland, the Netherlands and Lithuania, and exports to individual markets such as Spain, the UK, Germany and Finland also grew, while there was a decline to France and Italy,” says Aandahl.
Spaniards eat salmon at home
“Salmon is the favourite fish in Spain and we are seeing a turn to increased home consumption that has far compensated for the demise of the restaurant market in Spain. Exports of fresh whole salmon to Spain increased by 16 percent during the Easter week,” says Bjørn-Erik Stabell, the Norwegian Seafood Council’s country director in Spain.
“Spain, however, is currently one of the hardest hit countries in the world in the corona pandemic. It has also implemented some of the strictest restrictions for its inhabitants. This, of course, affects all Spaniards who are in their fifth week of lockdown and an analysis conducted by Kantar TNS shows, among other things, that 85 percent of Spaniards are concerned about their finances,” says Stabell.
Positive signs in Asia
“The total export of fresh whole salmon to Asia was similar to Easter week last year, while three markets in particular stand out positively, China, Hong Kong and Taiwan,” says Aandahl.
“As the Chinese market is now gradually returning to some normality, Norway continues to strengthen its position in the Chinese salmon market. This is seen in growth over the past few weeks, and last week’s exports of 623 tonnes represents an increase of 149 percent compared to the Easter week last year,” says Victoria Braathen, the Norwegian Seafood Council’s country director in China.
“Compared to Easter week last year, with exports of 11 993 tonnes, there was a 4 percent decrease in exports of fresh whole salmon. Exports of fresh salmon fillet decreased by 5 percent, while exports of frozen fillet increased by 123 percent to 1 027 tonnes,” Aandahl said.
“With an average export price for fresh whole salmon of NOK 59.40, there was a 12 percent decrease in the average export price in week 15 compared to the same week last year. Measured in Euro, the price fall is 33 percent,” says Aandahl
Cod exports increased during Easter week
“At 1 033 tonnes, fresh cod exports grew by 56 percent during Easter week compared to Easter week last year. In addition to Denmark, we also see growth in other processing markets such as the Netherlands and Poland. For Skrei, there was also an 11 percent increase in Easter week to 131 tonnes,” says Ingrid Kristine Pettersen, seafood analyst at the Norwegian Seafood Council.
“The growth is largely due to good weather and good deliveries of fresh cod throughout Easter week,” Pettersen says.
Clipfish “more in demand than Easter eggs”
“The growth in exports of clipfish and saltfish also continued last week, measured against Easter week last year. On the other hand, we see a significant fall in exports of stockfish, both in volume and price. This must be seen in the context of the major challenges facing the main market Italy during the corona crisis in the country,” Pettersen says.
“In Portugal, a lot of clipfish are traditionally eaten at Easter, and despite great uncertainty in connection with the corona crisis, it is reported that sales of clipfish went from normal to exceptionally good this year. One chain reported “greater demand for clipfish than Easter eggs,” says Johnny Thomassen, the Norwegian Seafood Council’s country director in Portugal.
“At the beginning of 2020, the Brazilian currency was already weak measured against the US dollar. In March, it fell further as a result of the coronavirus and fall in oil prices. The 31 percent weakening of the currency has sharply reduced the purchasing power of Brazilians, and clipfish faces lower market demand. So far this year the volume has been reduced by 26 percent and the value 22 percent,” says Øystein Valanes, the Norwegian Seafood Council’s country director in Brazil.
“We are seeing continued price growth for most products measured in NOK, but there is a significant price drop measured in Euro especially for fresh products compared to Easter week last year. The conventional products such as clipfish and saltfish still hold high price levels also measured in other currencies,” Pettersen adds.