Salmon Meal and Salmon Oil – Market Report 19 January 2016

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Posted on February 25, 2016
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Still low temperatures in Norway with low volumes of slaughtered salmon. Several slaughterhouses for salmon has put people in temporary leave. This gives currently a lower production of salmon oil and meal, and the outlook is for continuing low volumes. Attached you find a graph of the Price for Salmon Oil. To a certain extent it follows the price of Rape seed oil, with a premium. Until some years ago, fish oil prices was largely following the prices of other edible oils (mainly veg oils). However, the last few years, fish oil is moving more away from being a commodity, to be a product with limited production. The consequence of this is higher fish oil prices gives salmon oil a higher premium over rapeseed oil. And vice versa. Since the spring 2015, Salmon Oil was introduced as an ingredient in salmon feed. This has reduced some of the export volume from Norway.

Petroleum record low as Iran is allowed to export. We could probably write pages about this market, but in the current state of affairs, the direct impact on our products is limited.

The Salmon produced in Norway is Salmo Salar (Atlantic Salmon). This is a salmon breaded from fish stock in the best rivers of Norway, and some North American rivers flowing into the Atlantic. Last year we have seen profit margins in the range 1,2 USD per kg Salmon in Norway. At the same time in Chile producers are loosing 0,7 USD per kg salmon. We know that there is a problem with SRS in Chile, however the same illness occurs in Norway without the same impact. A lot of resources has been put into solving this issue, but still there is no clear solution. In Norway the Atlantic salmon is in its natural habitat, and in Chile it is an introduced species. However, apart from this, it is not a clear solution in sight. With the current reduction in the Chilean production, it adds on to the price rise for Norwegian Salmon. The price of Salmon has no direct impact on the price of Salmon meal and oil. Nevertheless, high salmon prices are often a result of lower volumes slaughtered. And again lower production of meal and oil.

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