Salmon farm­ers a good bet, says bank

Fish Farmer - - European News -

A LEAD­ING Nordic fi­nan­cial in­sti­tu­tion has said it ex­pects salmon farm­ing com­pa­nies to con­tinue to show an in­crease in earn­ings this year.

Danske Banke, which is Dan­ish owned and has op­er­a­tions in at least 16 coun­tries, be­lieves prices are ex­pected to rise or at least re­main sta­ble and this means salmon stocks con­sti­tuted a good in­vest­ment buy.

An­a­lyst Knut-Ivar Bakken told the Nor­we­gian busi­ness jour­nal Fi­nansvisen that de­mand for salmon re­mained strong, with growth at around six to seven per cent likely.

The sec­tor, he added, had made a good start to 2019, with salmon prices up by three per cent and global sup­ply in­creas­ing by five per cent. He con­ceded that price ex­pec­ta­tions have come down a lit­tle re­cently fol­low­ing a larger than ex­pected growth in sup­ply.

‘We still ex­pect some growth in av­er­age salmon prices,’ he said. ‘In gen­eral, we ex­pect low to moder­ate sup­ply growth over the next three to four years.’

He also pre­dicted that de­spite new types of pro­duc­tion, par­tic­u­larly in land based farm­ing, there was likely to be lit­tle change in meth­ods in the medium term.

Above: Knut-Ivar Bakken

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