European Salmon Market: Quality Up, Demand Down

European Salmon Market: Quality Up, Demand Down

The European salmon market is currently experiencing a complex situation with increased quality of salmon harvests coinciding with a decrease in demand. This has led to a surplus of salmon in the region, impacting prices.

Increased Quality in Norwegian Salmon

• Superior-grade harvests: Norwegian salmon farms have seen a rise in superior-grade salmon harvests. This is attributed to several factors, including:
• Shift in market dynamics: The increased quality has resulted in a shift in market dynamics, with exports to EU countries for processing decreasing by up to 33 percent compared to the previous year. This may be due to a larger proportion of high-quality salmon being retained for premium domestic markets.

Surplus and Decreased Demand in Europe

• Surplus of large fresh whole salmon: The EU is experiencing a surplus of large fresh whole salmon.
• Reduced demand from Asia: In addition to the European surplus, reduced demand from Asia contributes to decreased prices.
• Downward pressure on prices: The combination of a surplus and reduced demand is driving salmon prices down within Europe.

Other Salmon Producing Regions

• Chile: In Chile, the winter harvest of coho salmon has reached record highs, up 5 percent year-over-year, with average harvest weights also increasing by 3 percent compared to the previous year. However, the overall harvest for the year has dropped by 6 percent year-over-year.
• Iceland: Iceland is experiencing a drop in salmon volume forecasts for 2025 due to low temperatures and ongoing fish health issues.

Implications

The current market conditions in Europe suggest that while the quality of Norwegian salmon has improved, oversupply, decreased demand, and increased production in some regions are causing downward pressure on prices. These market forces will likely affect the industry in the short term.