Salmon prices of NOK 44 (€4.7/$5.3) and NOK 46 (€4.9/$5.5) per kilo are predicted for 2016 and 2017, respectively, by Nordea Markets analysts, who say the next two years will herald a new ‘supercycle’.
The salmon industry has been struck by wave after wave of negative news, but we expect the Norwegian producers to emerge not only relatively unscathed, but in a stronger earnings position, wrote Analysts Kolbjørn Giskeødegård and Anders Espedal Hagen in a recent report.
Despite price drops in key markets of 10-20 percent, 5 percent cost increases year on year, cold summers and biological challenges in key regions, plus fragmentation in Chile, massive currency swings closing some emerging markets and the Russian trade embargo on Norwegian product, the analysts believe the industry will emerge stronger and more robust from the downturn.
“We
