Photo: Norwegian Seafood Council

Norway exported $ 4 billion worth of seafood in the first quarter

NORWAY
Thursday, April 06, 2023, 01:00 (GMT + 9)

Norway exported NOK 41.4 billion (U$D 3,978,250,200.-) worth of seafood in the first quarter. This is an increase of NOK 7.4 billion (U$D 711,288,000.-), or 22 per cent, compared to the same period last year.

“Norwegian seafood exports have come through a historically strong quarter in terms of value. A significantly weaker Norwegian krone and price growth in the markets for species such as salmon, cod, trout, pollock and herring is the main explanation for the growth. This led, among other things, to the export value in March being the highest ever in a single month”, says Christian Chramer, Managing Director of the Norwegian Seafood Council.

“I am satisfied that seafood from Norway continues to be popular around the world. Norwegian seafood is sustainable and a good food choice for people of all ages and countries”, says Bjørnar Skjæran (Ap), Minster for Fisheries and Oceans.

Food inflation and a weak krone

“Many value records have been set in the first quarter, for example for salmon and in the whitefish category, but when we look behind the numbers, the picture is not as so positive. Strong food inflation and the weak krone explain a large part of the increase in value, and in addition the export volume of cod and salmon is falling, which helps to raise prices”, Chramer emphasizes.

The weak krone was the main reason for lifting the export value by around NOK 3 billion (U$D 288,480,000.-) in the first quarter, while increased prices in the markets contributed NOK 6 billion (U$D 576,960,000.-). The fall in volume, reduced the export value by around NOK 1.8 billion (U$D 172,998,000.-).

Demanding times

“World trade will also be affected in 2023 by war and turmoil in the world economy, so we are still living in challenging times. This is felt keenly in the markets, where consumers are now experiencing that their purchasing power has been substantially weakened”, says Christian Chramer.

Greatest growth in export value to the USA

Exports to the USA had the greatest growth in value in the first quarter, with an increase in export value of NOK 1 billion, or 40 per cent, compared to the same period last year. Thus, the strong development that we have seen recently continues.

Salmon is driving the increasing export value to the American market, but trout and frozen snow crab have also had a strong first quarter.

“It´s positive that the USA has proven to be a strong growth market for several species in the first quarter. For king crab and snow crab, the USA is one of the biggest markets this quarter, with growth in both value and volume”, says Bjørnar Skjæran, Minister for Fisheries and Oceans.

A volume decline for salmon

A total of 693,400 tonnes of seafood was exported in the first quarter. This is a decrease of 8.7 per cent compared to the same period last year.

“Salmon was one of the species which saw a decline in volume. A decrease of 6 per cent compared to the first quarter of last year. In the short term, this has helped to lift prices to historical highs”, says Christian Chramer.

Norwegian salmon portion China market -->

The first quarter also saw a volume decrease for important white fish species such as cod and haddock, while snow crab, pollock and mackerel experienced volume growth in the first quarter.

A record quarter for skrei

Despite lower quotas, a lot of bad weather and a late skrei season, the first quarter was notable for a high export value for fresh whole skrei. High inflation and lower volume in the market contributed to the growth in Norwegian kroner.

“The volume of exports to Spain, an important skrei market, has increased significantly in the first quarter, and 2023 could be the best skrei season of all time in Spain. In challenging economic times, it is particularly gratifying that the demand for skrei remains so strong in important European markets”, says Chramer.

<-- Photo: Norwegian Seafood Council

Poland, the USA and Denmark were the largest export markets in the first quarter

• Poland, the USA and Denmark were the largest markets for Norwegian seafood exports in the first quarter.
• The export volume to the USA ended at 30,000 tonnes, which is the same as the same quarter last year.

March sets a strong record

The export value for March totalled NOK 15.7 billion (1,508,927,000.-). This is an increase of NOK 3.2 billion (307,678,698.-), or 26 per cent, in comparison. with the same month last year.

This represents a record high export value for Norwegian seafood in a single month and NOK 561 million (53,942,046.-) higher than the previous record month, which was in October 2022.

Norwegian Salmon Fillet offer at Lidl France -->

Strong growth for salmon to the USA

• Norway exported 263,600 tonnes of salmon worth NOK 28.8 billion (U$D 2,769,217,344.-) in the first quarter.
• Export value increased by NOK 5.6 billion (U$D 538,468,000.-), or 24 per cent, compared to the first quarter of last year.
• Export volume fell by 6 per cent.
• Poland, the USA and France were the biggest markets for salmon in the first quarter.

Exports to the USA saw the largest increase in value this quarter, with an increase in export value of NOK 988 million (U$D 95,001,140.-), or 53 per cent, compared to the same quarter last year.

Export volume to the USA ended at 19,000 tonnes, which is 18 per cent higher than in the same quarter last year.

<-- Norwegian Fjord Frozen Steelhead Salmon, 2.27 kg | Costco

Weakened global supply

“A weakening global supply of salmon, growth in demand coupled with a strong dollar are the explanations for the explosive growth in our exports to the US”, says Paul T. Aandahl, Seafood Analyst with the Norwegian Seafood Council.

There is still a shift in salmon consumption in the USA towards increased restaurant consumption after the corona pandemic, while home consumption also remains at a high level.

Growth for processed products

“For home consumption, we are seeing a shift towards more processed products, such as ready meals. Poke bowl is a menu concept that has seen strong growth in recent years”, says Aandahl.

In the first quarter, fresh salmon fillets achieved record prices at NOK 148 (U$D 14.23) per kg. This is NOK 23 (U$D 2.21) higher than the previous record quarter, which was in the second quarter of 2022.

Fresh whole salmon also set record price highs at NOK 105(U$D 10.10) per kg. This is NOK 7 (U$D 0.67) higher than the previous record quarter, which was also in the second quarter of 2022.

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