Reports / April 05 2014

Grieg Seafood – Annual Report 2013


As anticipated, 2013 was the start of new high cycle in salmon farming. While demand in markets all over the world is strong, the supply of salmon has changed from historically high growth in 2012 to low growth in 2013. This development has
sharply increased prices

The good times we now observe are not coincidental, but caused by fundamental conditions of demand and supply. The demand for salmon is stronger than ever. Today we see increased demand for salmon both in large and established markets and in new and emerging markets. The strength in the for salmon is not only a question of salmon prices, but rather a consequence of improved availability through improved distribution, new and modern products that make preparation easier, and last but not least; salmon is both tasty and healthy food. The strong demand trend is a result of targeted market efforts made by many players, in order to make our high quality products a preferred choice for an increasing number of consumers in a wider range of markets.

Also on the supply side, fundamental conditions make it increasingly hard to see significant supply growth over a sustainable period of time. The challenge is rather to achieve a production growth that matches the growth of demand. This is in contrast to earlier times, when we experienced considerable unutilised capacity in multiple global production regions. A desired and necessary increase in salmon production will depend on our ability to increase production, and at the same time, as a minimum, not increase negative impact on the environment and fauna.

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