Salmon farmers a good bet, says bank
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