Last month, Norway's salmon exports were "saved" by the depreciation of the Norwegian krone as, so measured, the value increased by 3% over July 2023; however, in euros, it was unchanged, and, in U.S. dollars, it fell by 2%.
Photo: Norwegian Seafood Council.
The value of Norwegian seafood exports amounted to NOK 13 billion (EUR 1.1 billion / USD 1.2 billion) in July 2024. This is 6% more - NOK 727 million (EUR 61.5 million / USD 67.8 million) - than in the same month of 2023 when, as now, a weak Norwegian krone boosted Norwegian seafood exports' value, according to the monthly report of the Norwegian Seafood Council (NSC).
"The reason behind the increase in export value for July is a weakened Norwegian krone against both the euro and the dollar," explained NSC CEO, Christian Chramer. "We see that a sharp decline in salmon prices was compensated by volume growth, and in the end, it is the currency effect that adds value."
While this was the case for salmon, which Chramer described as "a quieter period with relatively low volumes for the remaining major species exported," July broke records for herring and mackerel.
Norway exported seafood products to a total of 111 countries in July - one more than the previous year. Of these, it was the UK that recorded the strongest growth, with an increase in export value of NOK 381 million (EUR 32.2 million / USD 35.5 million), 64% more than last year. The volume of exports to the UK ended at 19,092 tons, which is 117% more than in July 2023.
"So far this year, total exports to the UK have grown by 8% in value terms in Norwegian kroner and by 12% in volume terms. Apart from a positive trend for salmon and trout, the other growth is mainly due to exports of fishmeal and fish oil. Frozen whole cod has an overall volume growth of 3% and continues to take a larger share of Norwegian exports. The UK is a significant market for Norwegian haddock. It is positive to see a clear increase for both frozen and fresh whole haddock to the market in July," explained the Norwegian Seafood Council's director in the UK, Victoria Braathen.
As mentioned above, in July, the price of salmon fell again – as it has done in June and, in general, in the first half of the year - but the volume increased considerably. However, once again, the increase in the value of salmon exports was due to the depreciation of the Norwegian krone. If measured in Norwegian kroner the value increased by only 3% compared to July 2023, measured in euros, it was unchanged from July last year, and, measured in US dollars, it fell by 2%.
Last month, Norway exported salmon worth NOK 9.6 billion (EUR 813.1 million / USD 895.4 million), which means that the value increased by NOK 262 million (EUR 22.1 million / USD 24.4 million). This was a total of 107,442 tons, 13% more than in the same period of the previous year. Poland, the Netherlands, and the U.S. were its largest markets.
"Despite the fall in prices, the value of exports to several of the major markets is increasing," said Paul T. Aandahl, Seafood Analyst at the Norwegian Seafood Council. According to him, Germany saw the greatest growth in value, 46%, compared with the same month last year. The export volume to Germany ended at 4,800 tonnes, which is 53% higher than 2023.
"This development must be seen in the context of low supplies at the beginning of the year, as well as the currency situation, which is favourable from an export perspective," Aandahl added.
In contrast, exports of another salmonid, trout, rose 36% in July 2024. Norway exported 8,025 tons of trout worth NOK 698 million (EUR 59.1 million / USD 65.1 million), a volume growth of 38%. Thailand, Ukraine, and the United States were the largest markets for Norwegian trout last month.
Meanwhile, the decline in fresh cod landings continued at the same time that farmed cod kept its unstoppable growth. If the export volume of fresh wild cod in July fell by as much as 45% to just 1,429 tons - you have to go back to 2019 to find a lower export volume of fresh wild cod in a July month - for farmed fresh cod, the volume of exports increased by 200% to 955 tons.
In terms of value, exports of fresh wild cod fell by 37% to NOK 80 million (EUR 6.7 million / USD 7.4 million), while the value of farmed cod increased by 185% to NOK 58 million (EUR 4.9 million / USD 5.4 million). This means that farmed cod accounted for 42% of the value of Norwegian fresh cod exports in July 2024.
In total, last month Norway exported 2,384 tons of fresh cod worth NOK 137 million (EUR 11.6 million / USD 12.7 million), i.e. NOK 9 million (EUR 763.3 thousand / USD 840.7 thousand), a decrease of 6% compared to the same month last year. In volume terms, the drop was 19%. Denmark, the Netherlands, and Spain were the largest markets for fresh cod in July.
"The decline in fresh cod exports is expected, with lower quotas resulting in fewer landings and a lower volume. At the same time, we see that exports of farmed cod are stable at around 1,000 tonnes per month," explained Eivind Hæstvik Brekkan, Seafood Analyst at the NSC.
This quota cut also affected frozen cod, which fell by 32% in volume and 30% in value, and clipfish, whose export volume fell by 16%, while its export value fell by 10%. Congo-Brazzaville recorded the highest growth in value in July, with exports up 131% in value and 162% in volume exported compared to the same month last year. Meanwhile, Portugal, usually the main destination market for cod clipfish, decreased by 19% in volume.
As far as the other species are concerned, as NSC CEO Christian Chramer pointed out, there were two that stood out above the rest in July as herring and mackerel broke records. Specifically, record prices for the former - new records were set for frozen skinless herring fillet and for NVG herring fins -, and the best July ever for exports of the latter.
Although the volume recorded a 2% drop, the 10,734 tons of herring from Norway exported in July 2024 reached a value of NOK 211 million (EUR 17.8 million / USD 19.7 million). Compared to the same month last year, the value increased by 19%, this is NOK 33 million (EUR 2.7 million / USD 3 million). The Netherlands, Poland and Lithuania were the largest markets for herring in July.
July is, in fact, the month of the year when the least amount of herring is usually exported. However, this year exports are higher than in April, May and June. This is due to two factors, on the one hand, the low quotas for Norwegian spring-spawning herring (NVG), which is caught in autumn and winter, and on the other hand, the increased quota for North Sea herring, which is mainly caught between May and summer. This year, the North Sea herring season has started late, so most of the exports, which usually take place in May and June, have been shifted to July.
"In July, frozen whole North Sea herring was the largest export product. This also includes the sought-after maiden herring, known as matjessild, which is demanded by the Dutch," explained the Norwegian Seafood Council's Jan Eirik Johnsen, Manager for Pelagic Species.
"A weak Norwegian krone contributes to the price level of herring but is not the main explanation," he continued. "For July, we see that currency contributes by 4%, while increased prices contribute by as much as 12%, when compared with July last year. A low total quota for herring is the most important factor behind the high prices. In addition, high prices for flour and oil are also pushing up prices for herring for consumption."
As far as mackerel is concerned, as mentioned, 2024 was the best July ever for this species. Norway exported 9,260 tons of mackerel - a 39% increase in volume - worth NOK 220 million (EUR 18.6 million / USD 20.5 million), this means that its value increased by 50% compared to the same month last year. Egypt, the Netherlands, and Vietnam were its largest markets.
The previous record was set by NOK 172 million (EUR 14.5 million / USD 16 million) export value achieved in 2021. Normally, July and June are the months with the lowest mackerel exports and are dominated by the mackerel fishery in northern Norway. This year, fishing in the north has been demanding and so far 7,800 tons have been landed compared to 8,600 tons last year. However, large mackerel have been caught, with an average weight of over 550 grams, well above the usual average in this area of about 480 grams.
"Demand for Norwegian summer mackerel is reported to be good, partly as a result of Iceland and the Faroe Islands starting their mackerel fishery later than usual, and the Icelandic fishery is well behind last year," said Jan Eirik Johnsen.
"Egypt in particular demands summer mackerel, which is less fatty than autumn mackerel, which mainly goes to Asia. The Egyptians want a less fatty mackerel, as most of the mackerel is smoked," the Norwegian Seafood Council's Manager for Pelagic Species explained.