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    Home > Food News > Food Articles > Fearnley: Salmon prices continue to rise in the second quarter, global producers record profits

    Fearnley: Salmon prices continue to rise in the second quarter, global producers record profits

    • Last Update: 2022-05-15
    • Source: Internet
    • Author: User
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    Since the first quarter of 2022, global salmon prices have continued to rise.
    In the 17th week, major Norwegian manufacturers offered as high as NOK 135/kg, an increase of NOK 25/kg from a week ago
    .
    Norwegian brokerage Fearnley Securities predicts that all global salmon producers will profit from positive market conditions in 2022, with listed companies in Norway and Chile expected to record record profits
    .
     
    Nils Thommesen, analyst at Fearnley, said: “The salmon market situation in 2022 exceeded our expectations, with Norwegian prices breaking the NOK 100/kg mark for the first time
    .
    Given the continued tight supply in the market, we believe that prices still have room for upside in the second quarter and the market is expected to be in the second half of the year.
    There is a 'soft landing' that will ensure a new record for public company earnings
    .
    "
     
    Thommesen expects Norwegian producers' average farmed earnings per kilo to grow to NOK 62/kg in the second quarter
    .
    Global production is expected to fall by around 0.
    3% in 2022, driven by a decline in Norwegian feed sales, and the Norwegian listed company's full-year average earnings before interest and taxes (EBIT) will rise by 14%
    .
     
      Fearnley also expects salmon prices to remain high in 2023, with the Norwegian company's EBIT growing at around 12%
    .
    Global production is expected to increase by 5% and 4.
    3% in 2023 and 2024, and the high price of salmon is more than enough to compensate for the increase in feed costs
    .
     
      In the process of rising salmon prices, the profits of Norwegian producers Grieg Seafood and Masoval will show a relatively large increase.
    The trading forms of the two companies are mainly spot, and the contract price transaction of Grieg only accounts for 17%, and Masoval is 0%.
    %
    .
    salmon price
     
      Nils Thommesen, analyst at Fearnley, said: “The salmon market situation in 2022 exceeded our expectations, with Norwegian prices breaking the NOK 100/kg mark for the first time
    .
    Given the continued tight supply in the market, we believe that prices still have room for upside in the second quarter and the market is expected to be in the second half of the year.
    There is a 'soft landing' that will ensure a new record for public company earnings
    .
    "
     
      Thommesen expects Norwegian producers' average farmed earnings per kilo to grow to NOK 62/kg in the second quarter
    .
    Global production is expected to fall by around 0.
    3% in 2022, driven by a decline in Norwegian feed sales, and the Norwegian listed company's full-year average earnings before interest and taxes (EBIT) will rise by 14%
    .
     
      Fearnley also expects salmon prices to remain high in 2023, with the Norwegian company's EBIT growing at around 12%
    .
    Global production is expected to increase by 5% and 4.
    3% in 2023 and 2024, and the high price of salmon is more than enough to compensate for the increase in feed costs
    .
     
      In the process of rising salmon prices, the profits of Norwegian producers Grieg Seafood and Masoval will show a relatively large increase.
    The trading forms of the two companies are mainly spot, and the contract price transaction of Grieg only accounts for 17%, and Masoval is 0%.
    %
    .
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