Processors rush to buy as salmon prices fall

AS Norwegian salmon prices fell to their lowest level so far this year, fish curing companies in mainland Europe have been rushing to buy up large volumes, particularly the frozen variety.

Smokers in the Netherlands appear to be leading the charge, the Norwegian seafood press is reporting.

The price of Norwegian farmed salmon is expected to remain stable at around NOK 50 per kilo, or even slightly lower, industry sources told Reuters last month. This means buyers are using the new situation to build up reserves.

Harm Ten Napel, CEO of the Dutch salmon processing company Het Urker Zalmhuys, based in the port of Urk, said: ‘Our customers have been building up their stocks so we are doing the same by buying extra volume.

‘It is something we have been doing for a few weeks now. People are keen to secure salmon stocks over the next few months.’

Like buying any commodity in advance, there is always the risk that prices could fall further, but he believed that risk to be small. The companies that can afford it buy more volume now.

‘Customers who usually buy fresh salmon are also interested in more volume, but we are seeing no major increase at the moment.’

Napel said he expected prices to remain at current levels for the next few weeks.

‘Last year, prices were also at a low level, but it lasted only two weeks. This time we have already had four weeks with lower prices.

‘This has given us more time to create larger stocks for our customers, so there will be less upward pressure on prices in the weeks ahead – and we shall also have more volume.’

Another Urk based company, Visscher Seafood, also said it was buying extra volume. Some retailers expect prices to harden significantly by the end of October as processors prepare for the Christmas rush.