Norwegian Seafood Exports Rise; EU Flat, Asia and USA Up

Propelled as usual by ocean-raised salmon, seafood exports from Norway generated record-high receipts of NOK 94.5 billion and 2.6 million tons in volume during 2017. That was an increase of 3% and 7%, respectively, and amounted to the equivalent of 36 million meals every day, year round.

“It was another fantastic year, as we saw growth in value and volume for overseas markets in Asia and the United States, while exports to the EU were unchanged from 2016,” said Renate Larsen, managing director of the Tromsø-based Norwegian Seafood Council.

Aquaculture accounted for 72 per cent of all exports, while wild-caught seafood was responsible for 28 per cent. Measured in volume, the distribution was 40 per cent from aquaculture and 60 per cent from fishing.

Norwegian producers shipped 1 million tons of farm-raised fish worth NOK 67.7 billion during the year. This is an increase in value of NOK 2.3 billion, or 3.6 per cent, over 2016. Exported volume was at the same level as 2016.

“Higher salmon prices for European consumers reduced demand for the product in the EU,” said Larsen. “Since Europe is the dominant market for Norwegian salmon, a reduction in salmon sales has a large effect on the export price. This has contributed to lower salmon prices in the last six months of the year.”

Norway exported 1.6 million tons of wild-caught marine products worth NOK 26.8 billion in 2017. This is an increase in value of NOK 628 million, or 2.4 per cent, while the volume rose by 170,600 tons, or 12 per cent, over 2016.

Increased export volume for whitefish translated to a rise in value, but there are differences among the species. For example, Norwegian exporters were paid more for most cod products in 2017 compared with 2016.

Salmon, Cod, Mackerel Top 3 Species

There were records set for salmon, cod and haddock sales when measured in export value in 2017. Salmon is the most important species for Norwegian seafood exporters, claiming over 68 per cent of the total export value and 38 per cent of the volume. Trout pulls the volume down, so that exports from aquaculture are unchanged compared with 2016.

Reasons for disappointing trout sales include fewer producers concentrating on the species in Norway and the disappearance of the Russian market. Prior to the 2014 embargo on fishery products and other food imports from Norway, the EU, the USA, Canada and Australia, Norway was a major exporter of salmon and other species to Russia.

Most Important Markets

Norway exported 1.6 million tons of seafood to the EU worth NOK 61 billion in 2017. This is an increase in volume of 2 per cent, while the value is at the same level as 2016.

Buyers in Asia imported 539,000 tons of seafood worth NOK 18.7 billion from Norway in 2017. This is an increase in value of NOK 1.3 billion, or 8 per cent, and a rise in volume of 12 per cent, or 59,000 tons, over 2016.

“Increased seafood consumption in Asia is driven by a growing middle class and improved distribution. We expect that the growth will continue in the future, and one example is the potential for China. Given a full normalization of market access, salmon exports may reach 156,000 tons in 2025, equivalent to 12 per cent of current salmon production in Norway,” said Sigmund Bjørgo, the Norwegian Seafood Council’s country director in China.

The largest growth market in 2017 was the United States, where sales advanced by an impressive NOK 1 billion, or 23 per cent, for a total export value of NOK 5.7 billion. This made the USA the fourth most important destination for Norwegian fish and seafood products in 2017.

Norway shipped 196,000 tons of seafood worth NOK 8 billion to Poland in 2017. This makes it the largest export market, despite a decline in value of 7 per cent, or NOK 708 million, and volume slippage of 7 per cent, or 14,000 tons, from 2016.

Lower Level of Processing

Seen over time, the degree of value-added processing has declined for Norwegian seafood. In 2010, the share of unprocessed fish for export from the whitefish, pelagic and aquaculture industries amounted to 66 per cent. In 2017, the share of unprocessed fish increased to 69 per cent.

Only 17 per cent of salmon exports are processed before they are exported, while 83 per cent of the volume is exported as fresh or frozen whole fish. Even though the share has declined in the last few years, 53 per cent of all cod was processed into products such as salt fish, clipfish, stockfish or fillets for export.

“The seafood industry is one of Norway’s most important export sectors. And this year’s record exports strengthen its position. The government’s ambition is for the seafood industry to grow and create more jobs,” said Minister of Fisheries Per Sandberg.