Norway: Seafood exports show explosive growth in H1

Never before has such a high export value for Norwegian seafood been registered as during the first half of 2014, while at the same time, a new record was set in June. The value of Norwegian seafood exports increased by NOK 417 million (USD 67.4 million), or ten per cent, compared to the same month last year.

“Norway is a major supplier of seafood on the global market and the demand for Norwegian products was extremely high during the first half of the year. The increase in seafood exports is primarily attributable to the fact that the demand for salmon exceeded the supply and consumers in our traditional cod markets have demanded cod products from Norway after a record winter fishing season,” says Egil Ove Sundheim, Director of market information at the Norwegian Seafood Council.

The value of Norwegian salmon exports during the first half of the year totalled NOK 21.5 billion (USD 3.47 billion), an increase of NOK 4.1 billion (USD 663 billion), or 24 per cent, compared to the same period last year. During the month of June alone, the increase was NOK 400 million (USD 64.7 million), or 14 per cent, to a total export value of NOK 3.3 billion (USD 553 billion). The average price for fresh whole Norwegian salmon in June was NOK 36.03 (USD 5.82), compared to NOK 40.97 (USD 6.62) in June 2013. As in the previous month, the largest markets for Norwegian salmon were Poland, France and Russia.

The value of exports of Norwegian fjord trout in the first half of 2014 increased by NOK 228 million (USD 36.8 million), or 22 per cent, to a total export value of NOK 1.2 billion (USD 194 billion). In June, exports increased by NOK 7 million (USD 1.1 million), or 4 per cent, to a total of NOK 182 million (USD 29.4 million). The biggest markets for Norwegian Fjord Trout are Russia and Japan.

Herring exports fell in value during the first half of the year by NOK 140 million (USD 22.6 million), or ten per cent, to a total value of NOK 1.3 billion (USD 210 billion). The value of exports of herring in June totalled NOK 195 million (USD 31.5 million), down by NOK 76 million (USD 12.2 million), or 28 per cent. Russia and Germany are the largest markets for Norwegian herring.

Mackerel exports increased in value during the first half of 2014 by NOK 260 million (USD 42 million), or 41 per cent, to a total of NOK 900 million (USD 145.5 million). Exports in June were up NOK 35 million (USD 5.6 million), or 50 per cent, to a total of NOK 104 million (USD 16.8 million). China and Nigeria are the biggest markets for mackerel.

Exports of clipfish increased in value during the first half of the year by NOK 77 million (USD 12.4 million) to reach a total of NOK 1.5 billion (USD 242 billion). Measured in total export value, exports in June were up NOK 25 million (USD 4 million), or 13 per cent, to a total of NOK 226 million (USD 36.5 million). This figure breaks down into NOK 737 million  (USD 119 million) for cod, NOK 612 million (USD 98.9 million) for saithe, NOK 48 million (USD 7.7 million) for ling, NOK 44 million (USD 7.1 million) for cusk and NOK 12 million (USD 1.9 million) for other white fish during the first six months of the year.

The value of exports of salted fish, including fillets, was up by NOK 138 million (USD 22.3 million), or 25 per cent, during the first half of the year, to a total export value of NOK 690 million (USD 111.6 million), of which NOK 652 million (USD 105.4 million) was accounted for by cod exports.

Exports of fresh Norwegian cod, including fillets, during the first six months of 2014 increased in value by NOK 333 million (USD 53.8 million), or 40 per cent, to a total of NOK 1.2 billion (USD 194 billion). Exports of frozen Norwegian cod, including fillets, also increased in value during the first half of the year by NOK 245 million (USD 39.6 million), or 30 per cent, to a total of NOK 1.1 billion (USD 177 billion). Measured in value, 97 per cent of fresh and 60 per cent of frozen fish are exported to the EU. The remaining frozen cod was exported primarily to China.

Ukraine crisis hits Norwegian seafood exports

The military and political crisis in Ukraine has seen Norwegian seafood exports to the country drop by nearly 40% so far this year, according to figures from the Norwegian Seafood Council.

The country’s February Maidan revolution has plunged it in an economic crisis that has seen buyers’ purchasing powers and liquidity sharply reduced as the currency, the hryvnia, suffered a steep fall.

Now the latest figures from the Norwegian Seafood Council show that Norway’s exports to Ukraine, a significant market especially for pelagics, fell to just 27,000 metric tons in the first half of the year — a 38% or 16,600t drop from nearly 44,000t at the same time last year.

In value, exports were down by 32% or NOK 209 million to NOK 447m. Exports included frozen mackerel, which plummeted from 5,600t to 1,800t. Frozen capelin also dived, from nearly 6,800t to less than 1,300t. Frozen herring stayed relatively stable at 13,400t compared to 15,700t. Salmon was down by more than 4,000t to just under 6,200t.

In its first quarter report, Norwegian exporter Austevoll noted that the problems in Ukraine had caused a slow start for its new venture Pelagia, Norway’s biggest pelagic producer.

According to the Norwegian daily Aftenposten, the crisis has caused some 5,000t of Norwegian herring, mackerel and capelin to be diverted towards fishmeal instead.

Around half of Ukraine’s seafood imports came from Norway prior to February,said the newspaper, adding Norway had invested in TV and outdoors promotions and advertising in the country last year.

Nevertheless, Norway is not the only exporter to have struggled to sell to Ukraine since the Maidan revolution.

Exporters Undercurrent has spoken to said the main problem is they now only sell to Ukraine against prepayments, which buyers are often unable to offer.

In April, Argentinean hake exporters said their sales to Ukraine had dived by 67% year-on-year. Ukraine was the third highest importer of Argentinian hake in 2013, after Brazil and Spain, importing 14,981t

Ukraine is also the single largest market for Pacific whiting. In April, North American producers told Undercurrent the Ukraine crisis could have a big impact on exports.

“The instability [in Ukraine] is the biggest impact. It is much harder for customers to get products that they want to buy,” Larz Malony, of Pacific Seafood Group, which is the largest US player in Pacific whiting, told Undercurrent at the time.

“The instability [in Ukraine] is the biggest impact. It is much harder for customers to get products that they want to buy,” Malony had said.

The sales model to the Ukraine has always been based on some level of pre-payment, with the rest paid on 45-50 day credit, Pacific whiting producers said.

The huge surimi processor Viciunai has also said it is bracing for losses in Ukraine as a result of the unrest.

Purchases of Viciunai products have dropped as local residents started buying up canned food expecting even worse times ahead.

“It may be said that after the tragic events of Feb. 18 in Kiev, a kind of interregnum period has formed in Ukraine,” Visvaldas Matijosaitis, one of the founders of the Lithuanian company,told the ELTA news agency in March. “Some banks rushed to profit from the situation and started currency speculations. As it is known, the hryvnia then depreciated by as much as 40%.”