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Prices for Norwegian salmon have surged as faltering supply combines with booming global demand, according to Bloomberg.
More health-conscious consumers and rising consumption in developing nations like Brazil and China mean the world can’t get enough of the fish used in delicacies from blinis to sashimi. Demand in those countries and elsewhere has been “crazy good,” said Gorjan Nikolik, a seafood analyst at Rabobank International Ltd.
The market is also being squeezed from the supply side. Production is taking longer than expected to recover after a disastrous 2016, when salmon stocks around the world, including top producer Norway, were devastated by parasitic sea lice, while toxic “red tide” algae blooms killed millions of fish in Chile, the second-largest supplier.
This year, cold Norwegian waters meant salmon ate less and stayed smaller, said Nikolik. Chilean farmers have also harvested fish earlier because of concerns about more algae blooms, he said. A weak start to Alaska’s salmon run, when wild fish migrate to the upper reaches of rivers to spawn, is also adding to supply concerns.
Norwegian salmon prices have almost doubled in the past year to a highest-ever 76.09 krone ($9.41) a kilogram, according to Statistics Norway. (Source: Bloomberg)
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