Big drop in salmon price

The price of farmed salmon has dropped significantly in the past three months.

On Friday, the price of Norwegian farmed salmon dropped below 40 Norwegian kroner per kilo, which is below the production cost for most fish farms. In July, the price was above 60 Norwegian kroner. In other words, a price drop of one third in only three months.

In the Faroes, the price drop is not that steep, but salmon prices are significantly lower than a few months ago, says Atli Gregersen, CEO of salmon farming company Hiddenfjord, who believes this is due to the salmon market being flooded.

Bad news for the national economy

Farmed salmon is a crucial source of income for the Faroes, and the current price drop may have a great impact on the national economy.

The national budget for 2019 projects revenues of DKK 164 million through a special fish farming charge imposed on the salmon farming industry for the right to use the Faroese fjords for farming.

This charge is set at five percent when the price of salmon is above DKK 36 per kilo. When the price is between DKK 32 and 36 per kilo, the charge drops to 2.5 percent, and when the price goes below DKK 32, the charge is DKK 0.5 percent.

Salmon prices are determined in accordance with the so-called Fish Pool Index.

Translated by prosa.fo