Norwegian seafood producers exported products worth NOK 80.6 billion during the first six months of 2024, which amounted to 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 was largely driven by falling salmon prices,” said Christian Chramer, chief executive officer of the Norwegian Seafood Council (NSC).
Export value in June totaled NOK 12.1 billion, which was a decrease of NOK 2.7 billion, or 18 per cent, compared with the same month last year.
“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,” added Minister of Fisheries and Ocean Policy Marianne Sivertsen Næss.
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 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,” explained Chramer.
Salmon grew in value for 36 consecutive months before stalling in March of this year. In the first half of 2024, 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 there was a change in product composition towards more fillets,” said Chramer. “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.”
Continued Weakening of Purchasing Power
Demand in the major consumer markets is still characterized 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,” said 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 six months of 2024 follow:
The largest markets for Norwegian seafood sales 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 totaled 15,457 tons, which was 45 per cent higher than in the first half of last year.
Seafood was exported to 144 countries, amounting to two more than in the first half of last year.
These were the 10 largest species value results recorded during in the first half of 2024 in terms of NOK generated – Salmon: 56.3 billion (-3%); Cod: 6.8bn (-6%); Trout: 2.9bn (+27%): Satire: 1.9bn (-6%); Herring: 1.7bn (-8%); Mackerel 1.6bn (-19%); Haddock: 1.0bn (+1%); Prawns: 0.8bn (+17%); Snow Crab: 0.7bn (+48%); Capelin: NOK 0.5bn (+19%).
These were the top 10 destination countries in the first half of the year in terms of value – Poland: 7.3bn (0%); Denmark: NOK 7.2bn (-6%); USA: 6.3bn (-8%); Netherlands: 5.1bn (+1%); France, 5.0 billion (-11%); Spain: 4.5bn (+2%); United Kingdom: 4.2bn (0%); China: 4.2bn (-3%); Italy: 3.8bn (-4%); Portugal: 2.8bn (+1%).9
