Image: Norwegian Seafood Council

Norwegian seafood exports in November totalled U$D 1.47billion

NORWAY
Monday, December 05, 2022, 18:00 (GMT + 9)

Norway exported NOK 14.4 billion (U$D 1.47billion) worth of seafood in November, representing an increase of NOK 2.3 billion, or 19 per cent, compared to the same month last year.

So far this year, Norway has exported NOK 138 billion (U$D 14.13billion) worth of seafood. NOK 29.2 billion U$D 2.99 billion) ahead of the same period last year.

Increased costs and high food inflation

"The export value in November is the third highest ever in a single month and confirms that Norwegian seafood still has a strong global position. Nevertheless, the increase in demand is not taken out in greater volume but in higher prices. In general, we have high food inflation and increased costs, which drive up prices throughout the value chain", says Christian Chramer, CEO of the Norwegian Seafood Council.

Higher prices accounted for almost NOK 3 billion of the total seafood exports of NOK 14.4 billion in November. A solid month for salmon, trout, pollock and cod, all of which achieved export records compared to November last year.

Unrest in the salmon market 

"Although November in isolation was a strong export month for salmon, there are reports from the markets of an unsettled and unclear situation related to the contract market for salmon in 2023. This erodes the predictability that Norwegian salmon has represented for importers, producers and retail customers", says Chramer. 

Demanding times

In November, many seafood species were exported in lower volumes than a year ago, depressing revenues by approximately NOK 900 million compared to November last year. 

"These are challenging times for many of our wild-caught species and categories. High prices and lower purchasing power in Italy are, among other things, challenging for dried fish. After an excellent start to the year, we experienced a drop in both volume and value for herring and mackerel in November, so we are unlikely to see new export value record for pelagic exports this year", says Christian Chramer. 

Exports will exceed NOK 150 billion in value

If this year's strong value growth continues in December, seafood exports will pass NOK 150 billion by the end of 2022. This is mainly due to salmon, which accounted for 70 per cent of the total export value in November.

"For the second month in a row, salmon exports exceeded NOK 10 billion in value, a historically high level. After the first 11 months of the year, the total export value from the aquaculture sector is, for the very first time, NOK 100 billion", says Christian Chramer.

Photo: Norwegian Seafood Council --->

Norwegian domestic consumption falls

War and unrest have put a lot of pressure on consumer finances worldwide. This may affect the demand for Norwegian salmon in the vital hotel, restaurant and canteen segment in the future.

"We see that home consumption of salmon is falling in Norway's most important markets. So far this year, this has been compensated by more people eating out after the coronary restrictions disappeared. However, market reports suggest that many eateries are beginning to feel the effects of weakened purchasing power. In the long term, it may affect total salmon consumption negatively. It shows that we cannot take our strong market position for granted", says the Seafood Council's CEO.

Photo: Norwegian Seafood Council

Currency effect of NOK 300 million

In November, the Norwegian krone weakened against the dollar and the euro compared to the same month in 2021. This gave the export value a helpful boost.

"Since a weak kroner results in higher export prices measured in Norwegian kroner, it is a favourable development for everyone who sells goods abroad. In total, the currency effect contributed to a value increase of around NOK 300 million for Norwegian seafood exports in November", says Christian Chramer.

Image: courtesy chartoasis.com

Strongest growth in value to the USA

The USA had the most significant increase in value in November, with an increased export value of NOK 473 million, or 64 per cent, compared to the same month last year.

• The export volume to the USA ended at 10,587 tonnes, which is 22 per cent higher than the same month last year.
• Seafood was exported to 121 countries in November, six more countries than in November 2021.
• The largest markets for Norwegian seafood exports in November were Poland, Denmark and the USA.

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