Photo: Norwegian Seafood Council

Weak June resulted in a decline in seafood exports in the first half of the year

NORWAY
Thursday, July 04, 2024, 01:00 (GMT + 9)

Norway exported seafood worth NOK 80.6 billion in the first half of the year. This is a decrease of NOK 1.6 billion, or 2 per cent, compared with the same period last year.

“Although there was no growth in value, the first half of the year was the second best ever in terms of value. Only last year was better. A weak Norwegian krone and high prices for cod and salmon boosted value in the first five months of the year. However, the growth stopped in June, which is largely driven by falling salmon prices," says Christian Chramer, CEO of the Norwegian Seafood Council.

"Despite the downturn, the seafood industry is delivering strong figures with the second-best half-year figures ever. Nevertheless, weakened purchasing power in key markets, lower export volumes and increased competition from other seafood nations is something we must take very seriously, including through our work on market access," says Marianne Sivertsen Næss (Ap), Minister of Fisheries and Ocean Policy.

Historical decline in value

In June, seafood exports fell by 18 per cent, or NOK 2.7 billion, compared with the same month last year. This is a historic change. Never has the value of exports fallen by more than NOK 2 billion in a single month.

"Salmon still accounts for 70 per cent of the total value of Norwegian seafood exports, so when the price of fresh whole salmon fell by as much as NOK 31 in June compared with the previous month, it had a major impact on the total value," explains Chramer.

More demanding situation

Salmon grew in value for 36 consecutive months before stalling in March this year. In the first half of the year, the value fell by NOK 1.8 billion, or 3 per cent, compared with the same period last year.

“The situation was demanding in the first half of the year. Biological challenges resulted in lower harvesting volumes and a change in product composition towards more fillets. In June, global competition from other producer countries also increased, which had a negative impact on prices. The battle for salmon customers has now really intensified," says Christian Chramer.

Continued weakening of purchasing power

Demand in the major consumer markets is still characterised by weakened purchasing power.

“Even with lower inflation and the prospect of real wage growth in our key EU market, prices for both food and other goods have risen more than incomes in recent years. Real wages in the EU are not expected to return to 2021 levels until 2025," explains Chramer.

In addition to lower salmon prices, the first half of the year saw a quota cut for several of Norway's wild-caught species. This has affected the value of cod, king crab, herring and mackerel.

Facts about seafood exports in the first half of the year

• The largest markets for Norwegian seafood exports in the first half of the year were Poland, Denmark and the USA.
• Canada had the highest value growth, with an increase in export value of NOK 211 million, or 34 per cent, compared with the first half of last year.
• Exports to Canada totalled 15,457 tonnes, which is 45 per cent higher than in the first half of last year.
• Seafood was exported to a total of 144 countries in the first half of the year. This is two more than in the first half of last year.

These are the 10 largest species in the first half of the year in terms of value

• Salmon: NOK 56.3bn (-3%)
• Cod: NOK 6.8 billion (-6%)
• Trout: NOK 2.9bn (+27%)
• Saithe: NOK 1.9bn (-6%)
• Herring: NOK 1.7bn (-8%)
• Mackerel: NOK 1.6bn (-19%)
• Haddock: NOK 1.0bn (+1%)
• Prawn: NOK 0.8 billion (+17%)
• Snow crab: NOK 0.7bn (+48%)
• Capelin: NOK 0.5bn (+19%)

These are the top 10 destination countries in the first half of the year in terms of value

• Poland: NOK 7.3bn (0%)
• Denmark: NOK 7.2bn (-6%)
• USA: NOK 6.3 billion (-8%)
• Netherlands: NOK 5.1bn (+1%)
• France: NOK 5.0 billion (-11%)
• Spain: NOK 4.5bn (+2%)
• United Kingdom: NOK 4.2bn (+0%)
• China: NOK 4.2 billion (-3%)
• Italy: NOK 3.8bn (-4%)
• Portugal: NOK 2.8bn (+1%)

Seafood exports in June

• Export value in June totalled NOK 12.1 billion
• This is a decrease of NOK 2.7 billion, or 18 per cent, compared with the same month last year.

Source: Norwegian Seafood Council

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