Norwegian seafood exports squeeze value from falling volumes

Norway exported 2.7 million metric tons of seafood worth NOK 107.3 billion (€10.9 billion/$12.2 billion) in 2019, according to new figures from the Norwegian Seafood Council (NSC).

This represents a 3 percent decrease in volume but an 8 percent, or NOK 8.3 billion (€846.6 million/$946.2 million), increase in value compared to 2018, which was a record year.

This corresponds to 36 million meals every day throughout the year, or 25,000 meals per minute.

“In addition to a weak Norwegian krone and improved market access, we have seen a rise in prices for several of our most important commercial species," said NSC CEO Renate Larsen. "In sum, this has led to strong demand and higher prices for Norwegian seafood,” said Director of Market Insight and Market Access Tom-Jørgen Gangsø.

The relationship between aquaculture and fisheries has changed little from last year, with aquaculture representing 71 percent by value, and 44.6 percent by volume.

In 2019, Norway exported 1.2 million metric tons of farmed fish worth NOK 76.5 billion (€7.8 billion/$8.7 billion). Volume has increased by 7 percent, while the export value has increased by NOK 5.6 billion (€571.2 million/$638.4 million) or 8 percent compared to 2018.

Fisheries account for 29 percent of total seafood exports measured by value and 55.4 percent by volume.

For fisheries, export volume totaled 1.5 million tonnes, worth NOK 30.8 billion (€3.1 billion/$3.5 billion). This is a 10 percent reduction in volume, but a 10 percent or NOK 2.7 million (€275,400/$307,800) year-on-year increase in value.

Salmon's crown continues to grow

Salmon is by far the largest species both in terms of volume and value. Salmon exports in 2019 amounted to 1.1 million tonnes, representing NOK 72.5 billion (€7.4 billion/$8.3 billion) in export value. Export volume increased by 6 percent, and export value increased by 7 percent or NOK 4.8 billion (€489.6 million/$547.2 million) from 2018.

“The weakening of the Norwegian kroner and increased demand for Norwegian salmon are the two main reasons for the increase in value 2019,” said NSC Seafood Analyst Paul T. Aandahl.

2019 has seen a significant increase in the trade of seafood between Norway and China.

2019 was the year where Norwegian salmon made its comeback in the Chinese market. "Throughout the year, market access has bettered terms for Norwegian players with interest in the Chinese market," said NSC representative in China Victoria Braathen. "We expect the positive trend to continue for 2020."

For the fisheries sector, cod is the largest species measured in terms of value. Cod exports in 2019 totaled 181,000 metric tons, and NOK 10.1 billion (€1 billion/$1.2 billion) by value. Export volume fell by 8 percent, while value increased by NOK 660 million (€67.3 million/$75.2 million) or 7 percent compared to 2018.

The decline in export volumes for cod is due to reduced quotas since the peak year for cod in 2013. "A significant rise in prices for all the major cod products is therefore an important reason for the growth in value," said NSC Seafood Analyst Ingrid K. Pettersen. "The fall in volume, ably assisted by a weak Norwegian kroner coupled with growth in demand, explains the price increase."

There was also a significant increase in UK demand for frozen-at-sea cod.