Salmon Prices Explained
Salmon prices dropped by 16.10% as the market experienced oversupply. For instance, Alaska’s declining wild salmon value competes with farmed Atlantic salmon and Europe and Russia’s produce. Additionally, the state’s increasing production yearly contributes to the commodity’s growing inventory which drives down its prices.
Why are salmon prices fluctuating?
1. Imbalanced Supply and Demand
The rising supply of salmon currently offsets the modest demand for the commodity as the need from consumers remains the same. Additionally, global inflation played a big part in its dipping prices as customers consistently showed conservative spending on overall seafood consumption which affects salmon prices.
2. Salmon Aquaculture
The growing producers of farmed salmon from the Atlantic, coupled with the steady production of fishmeal contributes to the rising salmon surplus industry. Furthermore, smoother sea conditions in major producing countries give way to a more bountiful harvest which crowded the global supply, leading to decreasing salmon prices.
3. Fishing Condition
Salmon fishing follows specific seasonal patterns. The quantity of harvest during these seasons vary due to factors such as weather conditions, the health of fish populations, and regulatory guidelines. Thus, these variations in harvest volumes can directly change salmon prices.
4. Environmental Condition
Changes in ocean conditions, encompassing shifts in water temperatures, currents, and disruptions in habitats, can impact the availability of salmon and thereby affect their prices. Environmental occurrences like algal blooms or pollution can also influence the health of salmon populations, consequently impacting prices.
5. Market Condition
Economic factors and market dynamics significantly affect the pricing of salmon. Elements such as currency exchange rates, inflation, economic growth, downturns, and market speculation put pressure on salmon prices.
Which variables impact the price of salmon?
- Imbalanced Supply and Demand
- Salmon Aquaculture
- Fishing condition
- Environmental Condition
- Aquaculture Production
- Transportation and Distribution Costs
- Government Policies
- Trade and Global Demand
Where does salmon come from?
Different species of salmon thrive in regions where they predominantly spawn and mature. However, they all follow a similar life cycle pattern of migrating between freshwater and the ocean. Here are the types of wild salmon available:
1. Chinook Salmon – also known as king salmon or spring salmon. They are the largest and most prized species of salmon.
2. Coho Salmon – also known as silver salmon. They are famous for their mild flavor and moderate size.
3. Sockeye Salmon – The red salmon. Sockeye salmon are known for their vibrant red flesh and are a popular choice for culinary use.
4. Pink Salmon – The humpback salmon. They are the smallest and most abundant species of Pacific salmon.
5. Chum Salmon – also known as dog salmon or keta salmon. These fish have pale to medium-colored flesh and are commonly used for canned salmon products.
6. Masu Salmon – also known as cherry salmon, masu salmon are primarily found in the western Pacific region.
Salmon are a type of anadromous fish. They are born in freshwater, migrate to the ocean to grow and mature, and return to freshwater to spawn and complete their life cycle. Here are its detailed farming stages.
1. Hatching – the process begins with the selection of healthy adult salmon, known as broodstock. They are carefully bred to produce fertilized eggs. Eggs are collected and fertilized under controlled conditions. Additionally, the fertilized eggs are incubated in hatcheries.
The eggs hatch into alevins, which are juvenile salmon still attached to their yolk sacs. During this stage, they are kept in special incubation trays or tanks with controlled water conditions.
2. Smoltification – the smolts are moved to sea cages or pens positioned in coastal or offshore waters as it offers controlled space for the salmon to grow until they reach marketable size. Within these enclosures, the salmon are provided with a specialized diet tailored to promote growth and meet their nutritional requirements.
Furthermore, their feeding is carefully overseen, and the fish are nurtured until they reach a size suitable for the market, which usually takes around one to two years.
3. Harvesting – once the salmon attain the appropriate market size, they are ready for harvesting. The harvested fish are then transported to processing facilities for additional preparation and distribution.
Then, the processing stage includes tasks like gutting, cleaning, filleting, packaging, and freezing of the salmon. The processed salmon is later distributed to various markets and consumers.
What is the future price of salmon?
The global salmon market growth is driven by changing consumers’ lifestyles and enhanced demand for healthy and protein extensive food. For example, the Urner Barry Retail Features database record shows that sustainable seafood consumption rose 475% in its 10-year growth. Also, the food service industry began incorporating healthy protein menus apart from red meats. Therefore, the salmon industry can leverage this approach.
On the other hand, healthy production from Norway, Canada, the UK, and Iceland will dominate the market. However, experts predict that prices will rebound to elevated levels enough to sustain profit margins in the salmon industry. Overall, it is anticipated to increase in the following years, reaching an average of approximately $8.96 per kilogram in 2024, and will further increase by about $10.97 per kilogram in 2025.