< Back to news 08 August, 2016

Why salmon prices are soaring in 2016

As a consumer product, very few types of seafood are able to compete on the same levels of supply and international demand as farmed Atlantic salmon. In recent years, many end markets – including the EU, Asia and Americas – have become accustomed to attractively priced salmon. Read on to find out more from Beacon supply partner, Direct Seafoods.

Guest article: Direct Seafood

The appetite for Farmed Atlantic Salmon was most recently facilitated by the Russian trade ban that was introduced in 2014 and which, aligned with the general production growth trend, increased its availability significantly. As a result, the global exports of this fish totaled 2.3 million tonnes last year with a value in excess of €13 billion.

Collectively, the global salmon farming industry’s output has grown 7-8% annually since 1997. A year ago, it was forecast that it would produce between 2.4 and 2.5 million MT of salmon in 2016, up from 2.3 million MT last year. However, this year’s total should actually be expected to decline to around 2.2 million MT. Furthermore, the major players in the sector believe total production will most probably not increase for at least another two years.

The obvious questions centre on why is this happening to the salmon sector, and specifically why don’t salmon farmers simply produce a lot more fish to solve the supply stagnation/price issue? Essentially, there are a number of factors at play that have significantly reduced the harvests in key farming areas. And with international demand at unprecedented levels, the result is that at numerous stages this year salmon prices have been 30-40% more than they were a year previously. The following text aims to throw some light on the key issues affecting the current salmon trade.

To view the full report from Direct Seafood, click here.

To view our previous coverage on the Salmon shortage, click here.

If you would like to find out more about Beacon and our supply partners, click here or alternatively contact us on 01904 695588.