Canada eyes bigger salmon market share

Anjli Raval
February 17, 2010
The Globe and Mail

Salmon prices are jumping after the collapse of the Chilean industry through fish disease caused a sharp decline in global supply.

Wholesale prices for Norwegian-produced Atlantic salmon have risen 20.6 per cent since the start of the year, says Statistics Norway. That has extended a year-long rally in prices, which have risen 32.5 per cent. Industry analysts expect the surge to feed through to what people pay for salmon steaks and fillets.

Chile’s output, the world’s second largest, has been been hammered by the virus that causes infectious salmon anaemia, which emerged in 2007.

The disease, which does not affects humans if afflicted fish are consumed, kills off salmon by attacking their red blood cells.

Aslak Berge at First Securities in Norway said: “Chile, which was the second biggest producer of salmon, has seen its output plunge more than 75 per cent in two years.

“During peak production in 2008, Chile sold 403,000 tonnes but we forecast a sales estimate of 90,000 tonnes this year.”

Norway, the biggest producer, has had to take up the slack. In 2008 it accounted for about half global volumes – 1.5 million tonnes – of Atlantic salmon.

This is expected to increase to approach 70 per cent in 2010.

Canada and the U.K., which collectively account for about 20 per cent of the market, are also expected to see their shares expand.

Sjur Malm, analyst at SEB Enskilda in Norway, said: “We have never seen a year-on-year decline in global supply before, and this is happening in a market where the willingness to pay is increasing. 

Read the full story in The Globe and Mail

Story also in the Financial Times UK; February 18, 2010; " Salmon prices leap as disease outbreak devastates Chile's supply"