- Norwegian salmon farmers face challenges from an unusually harsh winter and the El Nino climate phenomenon which led to record fish mortality and concerns over long-term forecasts ahead of a warmer summer.
Norway, the largest producer of farmed Atlantic salmon, accounting for 50% of the global market, hopes for a healing summer after a tough first half of the year."Treating sea lice often stresses the fish, posing a threat to its welfare and its resilience to other diseases," DNB analyst Alexander Aukner said.
Some facilities are running at too high temperatures, causing fish to outgrow their organs and die when they enter seawater, said Christian Olsen Nordby and Kristoffer Haugland from Arctic Securities.Salmon exports make up about 2% of Norway's annual GDP, with 1.2 million tonnes of salmon valued at $11.2 billion exported last year, Norwegian Seafood Council said.
Before the ban, unprocessed fish bypassed tariff barriers to reach European markets, but now farmers need to sell the surplus injured fish at a discount to third-party processors, Scrase said. SalMar lowered its 2024 volume guidance earlier this year, while other major players have kept projections unchanged.