Best August ever for Norwegian seafood exports
"August 2024 has the highest export value ever measured in an August month", says Christian Chramer, CEO of the Norwegian Seafood Council.
Half of the total growth in value can be attributed to the currency effect.
"Compared with last year, higher salmon volumes and a weaker Norwegian krone drove up the value of Norwegian seafood in August. We also see that higher volumes of trout and mackerel are contributing positively, in addition to an increase in prawn exports. At the same time, the price of salmon measured in foreign currency has fallen, while we had lower volumes of both saithe and cod", says Chramer.
"At the same time as the low exchange rate results in good export figures measured in Norwegian kroner, many seafood companies have to deal with the general increase in costs in society. Expenses are not necessarily in line with revenues", says Chramer.
These are the biggest markets in August
Seafood was exported to a total of 109 countries in August. This is 5 fewer than in August last year.
Lower import prices for salmon do not result in corresponding growth in volume
Germany saw the greatest growth in value in August, with an increase in export value of NOK 133 million, or 37 per cent, compared with the same month last year. The export volume to Germany ended at 5,556 tonnes, which is 26 per cent higher than the same month last year.
"Even though this is a record export month for Norwegian salmon, both in terms of price and volume, the market trend is uncertain", says Seafood Analyst Paul Aandahl of the Norwegian Seafood Council.
"In the global market, we see that the import value in local currency is weakening in several of the countries. A lower import price in 2024 has not been compensated by corresponding growth in volume. This applies, for example, to the USA, China and Thailand", says Aandahl.
Historically strong month for trout in value and volume
This is a record high export value for trout in a single month, NOK 145 million higher than the previous record month, which was in July 2024.
Lithuania saw the greatest growth in value in August, with an increase in export value of NOK 81 million, or 324 per cent, compared with the same month last year. The export volume to Lithuania ended at 1,354 tonnes, which is 275 per cent higher than the same month last year.
"Trout accounted for 5.3 per cent of the export value in August. This means that trout is now the second largest species in Norwegian seafood exports", says Paul Aandahl.
Increase in farmed cod and continued reduction in fresh wild cod
For fresh wild cod, the export volume fell by 18 per cent to 1,574 tonnes, while the export value fell by 12 per cent to NOK 97 million. Both the export volume and export value of fresh wild cod have now fallen for 11 consecutive months, and as in previous months, the decline in the cod quota is the main reason.
For fresh farmed cod, the export volume increased by 84 per cent to 767 tonnes, while the export value increased by 72 per cent to NOK 47 million. So far this year, 8,100 tonnes of fresh farmed cod have been exported, which is 41 per cent higher than last year. Farmed cod accounted for 33 per cent of the export value of fresh cod in August.
Frozen cod increases in China after import ban
China saw the greatest growth in value in August, with an increase in export value of NOK 42 million, or 248 per cent, compared with the same month last year. The export volume to China ended at 884 tonnes, which is 109 per cent higher than the same month last year.
"After the US import ban on Russian cod was tightened to include cod processed in third countries, the Chinese processing industry has had to find other suppliers for cod destined for the US market," explains Eivind Hestvik Brækkan, Seafood Analyst at the Norwegian Seafood Council.
"Although export volumes from Norway to China are still far lower than they were two years ago, volumes to China have increased sharply in recent months. "We believe a large proportion of this cod will be processed and re-exported to the USA", continues Brækkan.
Fewer large cod affect clipfish consumption
For saithe clipfish, the export volume fell by 11 per cent to 4,314 tonnes, while the export value fell by 17 per cent to NOK 180 million. Although the export price for saithe clipfish increased slightly from July to August, it remains well below last year's price, with a price of NOK 42 in August, down from NOK 45 in the same month last year.
For cod clipfish, the export volume fell by 13 per cent to 1,635 tonnes, while the export value fell by 7 per cent to NOK 209 million. Lower availability of large cod means that small clipfish takes a larger share.
Small clipfish on the rise in Portugal
Reduced availability of large cod is also affecting consumption in our largest clipfish market, Portugal. Consumption of Crescido, which is small clipfish, has increased significantly this year, while consumption of larger clipfish such as Graudo and Especial has decreased.
"Lower cod quotas also mean that the export volume of clipfish is falling. The fact that there are fewer large cod available is a challenge for producers and consumers, who prefer the largest clipfish. So it's positive to see that the Portuguese are adapting to the smaller sizes available and continuing to eat Norwegian clipfish", says Trond Rismo, the Norwegian Seafood Council's envoy to Portugal.
"Grocery prices for clipfish in Portugal have followed roughly the same trend as food in general over the past two years. Recently, however, we have seen a noticeable increase in clipfish prices in Portugal, especially for large clipfish", explains Trond Rismo.
Saithe clipfish adds value to the Dominican Republic
For saithe clipfish, the Dominican Republic is our largest market. This is also the market with the highest value growth in August, with an increase in export value of NOK 13 million, or 23 per cent, compared with the same month last year.
The export volume to the Dominican Republic ended at 1,800 tonnes, which is 28 per cent higher than the same month last year. 98 per cent of the export volume to the Dominican Republic is saithe clipfish.
Both volume and value of salted fish fall
Salted whole cod accounted for 53 per cent of the export volume of salted fish in August, and all exports of salted whole cod went to Portugal. Portugal was also the market with the highest value growth in August, with an increase in export value of NOK 5 million, or 9 per cent, compared with the same month last year. The export volume to Portugal ended at 611 tonnes, which is 15 per cent higher than the same month last year.
Strong value growth for stockfish
"The reason why the export value increased by more than 100 per cent at the same time as the volume fell is that cod stockfish accounted for only 25 per cent of the stockfish volume in August last year, while this year it accounted for more than 60 per cent," explains Eivind Hestvik Brækkan.
"Since stockfish of cod has a much higher price than stockfish of other species, there was a strong increase in value even though the total export volume of stockfish fell", says Brækkan.
Italy, Norway's largest stockfish market, saw the greatest growth in value in August, with an increase in export value of NOK 24 million compared with the same month last year. The export volume to Italy ended at 81 tonnes, which is 74 tonnes higher than the same month last year.
Increased competition for herring - and record prices
Herring exports in August were characterised by a trend of less and less whole frozen herring. 1,600 tonnes of whole frozen herring were exported in August this year, compared with 3,000 tonnes in August last year.
"Lower quotas and better economics in the production of fillets mean that the proportion of frozen whole herring is falling. At the same time, this creates increased competition for the volume that is exported, and a new price record was set in August in both Norwegian kroner and euros, with NOK 14.58 per kg and EUR 1.24 per kg respectively", says Jan Eirik Johnsen, Head of Pelagic Species at the Norwegian Seafood Council.
"It is gratifying to see that exports of prepared and preserved herring are increasing, after exports have been hit hard by the lack of implementation of new negotiated tariffs from the EU", continues Jan Eirik Johnsen.
Although there was an increase in August compared with the same month last year, exports of these important herring products are far behind what is normal so far into the year.
"During the first eight months of the year, 5,800 tonnes of prepared and preserved herring were exported, compared with 10,150 tonnes in the same period last year. The value decreased from NOK 236 million to NOK 142 million. "As these are key products for individual companies, these are dramatic figures", explains Jan Eirik Johnsen.
Increased mackerel landings bring growth to key Asian markets
The start of the mackerel season three weeks earlier and great efforts by Norwegian fishermen have resulted in 53,000 tonnes of mackerel being landed in August this year compared with 24,000 tonnes last year. This is reflected in increased exports, especially to the important Asian markets. Last year, 44 per cent of mackerel exports went to Asia in August, compared with 60 per cent in August this year.
"A new price record has also been set for frozen mackerel under 600 grams, with an average of NOK 24.25 per kg, compared with the previous record of NOK 23.33 per kg set in April", says Jan Eirik Johnsen, Head of Pelagic Species.
Reduction in quotas leads to continued decline for king crab
August is usually one of the strongest months for king crab catches and exports, with high demand for live king crab in Asia. This year, the quota reduction has led to a decline in landings and exports compared with August last year.
In August, live king crab accounted for 86 per cent of the export volume. The Asian markets dominate here, with a share of 71 per cent of the export volume. This is despite increased competition from Russia in the Asian market. Russia began fishing for red king crab earlier this year.
The export price is only just above last year's August with an average price of NOK 469 per kg, continuing a downward trend from the start of the year.
"The decline in export prices should be seen in the context of increased competition from Russia and the fact that smaller king crabs have been landed and exported", says Josefine Voraa, Head of Shellfish at the Norwegian Seafood Council.
It was a weak export month for frozen king crab, with a decline in volume of 78 tonnes. The biggest decline is to the US market, which is down 52 tonnes so far this year.
"We recognise that higher demand for live king crab and lower availability of large crab are some of the reasons for the fall in frozen king crab prices in August this year", explains Josefine Voraa.
Japan is the largest market for snow crab
"With a record-breaking peak in catches and a record-high volume exported during the first half of the year, it is not unexpected that less volume is now being exported", says Josefine Voraa.
In August, Japan was the largest market for frozen snow crab, continuing the positive trend of increased volumes that we have seen so far this year. Up to and including August, almost 900 tonnes have been exported, which is 144 per cent above last year in volume.
"Demand for frozen snow crab in the Japanese market has picked up this year in line with the growth and development of the country's economy", explains Voraa.
Challenging situation in Canada fuels growth in prawn exports
"The prawn fishery in the Barents Sea is still good, with many boats in the field and increased landings of industrial prawn and frozen, cooked shellfish. This has led to a strong volume increase in prawn exports in August this year compared to last year", says Josefine Voraa, Head of Shellfish.
The growth in value in August is mainly due to increased volumes of raw frozen industrial prawn. More than 1,700 tonnes of industrial prawn went to the industry in Iceland and Canada in August, compared with nothing last year.
Canada faces major challenges in its fishery with declining quotas and catches of cold-water prawn, which has resulted in 5,520 tonnes of industrial prawn going there so far this year.
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