Norwegian seafood exports generated receipts of NOK 9.4 billion in November. The decrease in value of 11 per cent, or NOK 1.2 billion compared to the like month in 2019, has been attributed largely to depressed demand in the foodservice sector caused by government-imposed restaurant closures and restrictions due to the novel coronavirus (SARS-CoV-2) pandemic.
So far this year, shipments have generated NOK 96.6 billion, down NOK 1 billion, or 1 per cent, when compared to the same period in 2019.
“Norwegian seafood exports are now seeing the impact of a hotel and restaurant sector that has more or less shut down across Europe. In addition, the demand for traditional products such as clipfish and stockfish, which are often eaten at larger dinners with friends and family, has fallen due to the restrictions on mixing households,” said Tom-Jørgen Gangsø, the Norwegian Seafood Council’s (NSC) director of market insight and market access.
Significant Drop in Demand
“November 2019 was an exceptionally strong month, so that should also be taken into account when comparing year-on-year performance. At the same time, the fall in export value would have been greater if the Norwegian kroner had not been so weak,” said Gangsø.
He added: “The large Christmas sales of seafood this year must be covered by the retail trade, but it will not be enough to offset the loss of demand from the restaurants. A result of this is a significantly reduced price for most of the seafood products.”
“We experienced a decline across almost the entire line in November. The big bright spot was mackerel, and we are also seeing growth in king crab exports. Together with herring, mackerel is mainly sold in the grocery trade, has a long shelf life and is cheaper than many other products. During the coronavirus crisis, there has been increased demand for herring and mackerel, and we see that the export value for these species has already exceeded last year,” said Gangsø.
Decline in Value for Salmon
Approximately 108,000 tons of salmon worth NOK 5.8 billion were exported in November. While up 1 per cent in volume, value fell by NOK 991 million, or 15 per cent, compared with November of 2019.
Poland, France and Denmark were the largest markets for Norwegian salmon last month. The the export price for salmon was NOK 47.97 per kilo, which was 19 per cent lower than in the same month during 2019.
“Due to the corona situation and a reduced turnover in the restaurant sector, salmon is not able to reach the record price highs we saw before Christmas last year. The fall in value could actually have been greater, but this has been offset by increased sales of salmon fillets,” said Paul T. Aandahl, a seafood analyst with the NSC.
So far this year, 1 million tons of salmon worth NOK 64 billion have been exported. Volume remains at the same level as last year, while the value fell by NOK 1.6 billion, or 2 per cent.
Trout Exports Remain Stable
Approximately 6,200 tons of trout worth NOK 352 million were exported in November. Volume fell by 8 per cent during the month, while value declined 7 per cent to NOK 28 million. Belarus, Japan and the USA were the largest markets.
“Compared with salmon, trout saw less severe falls in value in November. Traditionally, relatively little Norwegian trout is sold for consumption outside the home, and it is therefore less affected by the restaurant sector closures,” said Aandahl.
The average price for fresh whole trout in November was NOK 52.49 per kg, which was 1.5 per cent lower than in the same month last year. It marked the first time since March of 2019 that the price for fresh trout was higher than for fresh whole salmon.
So far this year, 66,000 tons of trout have been exported to generate NOK 3.6 billion in receipts. The increase in volume has been 22 per cent, while the rise in value amounts to NOK 243 million, or 7 per cent.
Decline for Fresh Cod
Norway exported 2,000 tons of fresh cod, including fillets, worth NOK 94 million in November. Volume fell by 32 per cent, and value declined by NOK 47 million, or 33 per cent, compared with the like month last year. Denmark, Sweden and Germany were the largest markets.
“Some bad weather in November has led to fewer landings of cod, and this is also reflected in exports,” said Ingrid Kristine Pettersen, an analyst with the Norwegian Seafood Council.
So far this year, 46,000 tons of fresh cod have been exported for NOK 2.1 billion. This is a reduction in volume of 7 per cent, while export value fell by NOK 115 million, or 5 per cent.
Lower Demand for Frozen Cod
Approximately 6,800 tons of frozen cod worth NOK 276 million were exported in November, with China, the UK and Lithuania ranking as the largest markets. Volume was down by 7 per cent and value fell by NOK 35 million, or 11 per cent, compared with the same month in 2019.
“The decline in volume and falling prices for frozen whole cod is the reason for the decline in value. For frozen fillets, there is still growth, both in volume and price. This can be seen in connection with the fact that several markets are now experiencing a new closure,” said Pettersen.
Growth in UK
The United Kingdom is a market that saw growth for both frozen whole cod and frozen fillet of cod in November.
“This is probably due to both a need to secure fish before the turn of the year and the transition to Brexit, but also because of an increased need for frozen fillets from the grocery trade after the country closed down again,” said Hans Frode Kielland Asmyhr, the Norwegian Seafood Council’s seafood envoy to the UK.
So far this year, 65,100 tons of frozen cod have been exported to Britain for NOK 2.9 billion. The volume is unchanged, while the value increased by NOK 148 million, or 5 per cent.
Challenging Clipfish Market
Norway exported 7,600 tons of clipfish worth NOK 425 million in November. Export volume fell by 15 per cent. Value dropped by NOK 110 million, or 21 per cent, compared with the same month last year. Portugal, Brazil and the Dominican Republic ranked as the largest markets for Norwegian clipfish during the period.
“We have seen a decline for clipfish of both cod and saithe in November. Although there is still growth in the Dominican Republic and Jamaica, it is not enough to offset a continued weak trend in exports to Brazil,” said Pettersen.
Historical Growth
“Sales of clipfish have been good in the Dominican Republic throughout the coronavirus pandemic period. Volume and value are at an all-time high, with an increase of 20 per cent and 38 per cent respectively for Norwegian saithe clipfish. This is partly because quarantine requirements and curfews have led to people staying at home, where 70 per cent of clipfish is consumed. At the same time, good support schemes have maintained and to some extent increased purchasing power,” said Øystein Valanes, seafood envoy to Brazil for the Norwegian Seafood Council.
So far this year, 74,700 tons of clipfish have been exported for NOK 3.9 billion. There is a reduction in volume of 13 per cent, while the value fell by NOK 528 million, or 12 per cent.
Decline for Herring
Norway exported 49,000 tons of herring worth NOK 560 million in November.There is a decrease in volume of 32 per cent. The value fell by NOK 23 million, or 4 per cent, compared with the like month last year. Poland, Lithuania and Germany were the largest markets.
“The decline in herring exports must be seen in light of the fact that November last year was a very strong month. When we look more closely at the figures, we see that herring exports so far this year have already exceeded last year in value. This comes as a result of a shift away from the export of whole frozen herring to more valuable fillet products and processed products,” said Jan Eirik Johnsen, who is responsible for pelagic strategy at the Norwegian Seafood Council.
In November, the export value of herring fillets increased by 26 per cent, while the value of processed products rose by 13 per cent.
“This is due to increased consumption, and thus increased demand in key markets such as Germany and Poland, which in turn is driven by the corona crisis where good, healthy and cheaper long-term sustainable products are in demand,” said Johnsen.
MSC Effect
On November 30, the Marine Stewardship Council (MSC) announced that the certificate for Norwegian spring-spawning herring (NVG herring) will be suspended on December 30.
“This contributes to an increase in exports to markets such as Germany, which want to secure MSC-certified herring. In addition, the export value of herring roe so far this year has reached NOK 410 million, which is an increase of as much as 153 percent compared to 2019,” said Johnsen.
Strong Mackerel Exports
Norway exported 58,000 tons of mackerel worth NOK 928 million in November. This was a rise in volume of 45 percent. Export value increased by NOK 185 million, or 25 per cent, compared with the same month in 2019.
“We now see that the quota increase of 40 per cent compared to 2019 is reflected in higher export volumes. Good demand in the consumer markets Japan, South Korea and Taiwan drive export value upwards. This has resulted in the export value for mackerel already passing last year, which was a peak year for mackerel exports,” said Johnsen.
Growth for King Crab
Exports of king crab hit 194 tons worth NOK 65 million in November, up 114 percent in volume. Value increased by NOK 35 million, or 118 per cent, compared with the same month last year.
“The positive development in export value continues for both frozen and live king crab. The increase is driven by a growth in demand for frozen king crab in Europe and the USA, and for live king crab in Asia,” said Josefine Vomanager, the Norwegian Seafood Council’s shellfish manager.
Positive Developments in USA
Exports of frozen king crab and snow crab to the United States are doing particularly well. In November, the USA was the largest growth market for king crab, importing 50 tons worth NOK 21 million. This was an increase of 24 tons and NOK 13 million compared with November of 2019.
Exports of snow crab have also had solid growth, with an increase of 23 tons and NOK 7.4 million.
“The most important reason is that we see a craving in the market after the quotas for king crab in Alaska became very low this autumn. The USA has therefore had to import more to cover domestic needs,” said Anne-Kristine Øen, the Norwegian Seafood Council’s envoy to the United States.
So far this year, 1,900 tons of king crab have been exported for NOK 605 million. Volume is unchanged, while the value increased by NOK 21 million, or 4 per cent.
Fall in Value for Prawn Exports
Prawn export volume fell 8 per cent to 998 tons that generated NOK 72 million in sales during November. This reflected a fall in value to NOK 19 million, or 21 per cent, compared with the same month last year.
“After two very strong export months for Norwegian prawn to Sweden, we see a connection between a decline in exports in November and stricter restrictions and a decline in the restaurant market. The UK continues to be a challenging market for our prawn exports at the same time as we see an increase in markets such as Denmark and the Netherlands,” said Voraa.
So far this year, 11,000 tons of prawn have been exported to fetch NOK 832 million in receipts. This amounts to a reduction in volume of 28 per cent, while value cropped by NOK 191 million, or 19 per cent.
