Salmon prices ‘set to to leap’

THE price of Scottish salmon could rise following a decline in stocks produced by overseas rivals.

A toxic algal bloom has killed millions of fish in Chile – pushing up the cost of its salmon by more than 60 per cent.

This follows problems for the industry in Norway in recent years caused by extreme weather and an outbreak of sea lice.

Experts have warned: ‘Retailers should prepare themselves for a further hike in salmon prices as global supplies feel the pinch from Chile’s toxic algae attack.’

Luana Clapis, market analyst for Mintec, told trade magazine The Grocer: ‘Algal blooms contain large numbers of marine algae which occur naturally in the ocean but usually in lower concentration.

‘However, abnormal high ocean temperatures fuelled by El Nino have allowed the bloom to flourish. Chilean salmon production is expected to decline 16 per cent year on year in 2016, to 494,000 tons.’

According to the magazine, although Chilean authorities have claimed the algae levels were declining, the country is now battling a second algae attack.

Marine biologists have suggested that it could take months for the blooms to dissipate entirely. In Norway, this year’s salmon stocks are significantly lower due to a mass harvest carried out as a result of the sea lice outbreak last year.

As a result of the combination of sea lice, weather conditions and continued early harvests, the average weight of salmon produced by the industry in the region is said to have dropped.

Total production this year is forecast to be 1.18million tons – down 5 per cent on 2015 – and last month prices were up 63 per cent compared to the same time last year.

Miss Clapis added: ‘Since salmon takes, on average, two years to fully grow, the early partial harvest of 2014’s salmon generation is likely to limit the 2016 harvest.’