Issues with quality from farmed salon in Norway and adverse weather conditions have caused the price of both raw and smoked salmon to soar again.
If you regularly add salmon to your menus, you may have noticed that the cost of this popular fish has risen again recently. According to industry sources, there are several factors at play that have led to another huge spike in the cost for both raw and smoked forms.
One of the primary factors is the presence of winter sores in Norwegian fish. Like last year, the industry is seeing a lot of fish with these sores again, which means that there is now a higher proportion of 'production grade' salmon being harvested. These fish cannot be exported as whole fish, which is putting a strain on the supply chain.
In addition to this, there have been severe storms in Norway that are affecting both transport and processing. This is making it more difficult to get the fish from the farms to the market, which is driving up costs even further.
Despite these challenges, global demand for salmon remains strong. This, combined with the shortage in supply, has seen prices rise by 29% since the end of January. Unfortunately, it is not expected to stop there. Industry experts predict that we could see prices rise by a further 12% in the coming weeks.
All of this is compounded by the issues that producers and wholesalers continue to face with increased costs to serve. These companies are struggling to maintain their margins, which means that they are passing on these increased costs to their customers.
So, what does this mean for the hospitality sector? Well, if you regularly add salmon to your menus, you may need to switch to another species, reduce portion size to bring down the cost or work with your food wholesaler on interim price reviews.
Overall, the recent spike in the cost of salmon is a reminder of the many factors that can impact the price of our food. From weather events to supply chain issues, there are many variables at play that can drive up costs. While it's difficult to give an accurate prediction of what further increases will be seen, it's likely that costs will remain high in the interim.