Industry news

Rabobank: Salmon sector to recover from COVID slump quicker than shrimp

Datetime：2020-09-18

While both salmon and shrimp prices are expected to increase in the coming months-- driven by a demand pickup combined with slower output growth-- the salmon sector is going to recover faster, according to Rabobank's analyst Gorjan Nikolik.

Salmon prices were likely to be pushed up later this year and next year by tighter Chilean supply, which is expected to drop 8% year-on-year in 2021, and progressive recovery of consumption in the foodservice sector.

Nikolik noted the European salmon sector has been one of the best-performing markets during the pandemic crisis.

"From now on, pretty soon, we'll see (salmon) prices recovering somewhat as demand continues to pick up," Nikolik noted, observing the upcoming Christmas and end of the year holidays should also push demand up, driving prices to recover in the coming months. Additionally, from early 2021, a drop in Chilean harvests and low output in Norway is going to further support prices, according to Nikolik.

According to a report published on Aug. 26 by Pareto, Fish Pool foresees salmon prices remaining depressed in Europe in the second part of this year ( in part thanks to seasonal patterns), but foresees a " promising" salmon price outlook for 2021 and 2022.

The salmon price increase would benefit producers in all key salmon regions, it said.

News Source: UCN