A small size on the 2014G has resulted in low average harvest weights. Weights are now running 4% below the normal (last 4 weeks), which is positive for the market balance going forward
Harvest weights are now 4% below the normal…..:
- The main reason for the low harvest weights is that farmers have started to harvest more of the 2014G, driving down the average harvest weight.
- Normally, the switch happens a bit later, but is pushed forward in time due to the good growth conditions this year and a lack of 2013G.
- A large influx and share of small fish should be positive for the price for large-sized salmon (which has been under pressure for the most part of 2015).
- With lower than normal weights, farmers must harvest more than the planned number of fish individuals, which is positive for the market balance going forward.
The data is provided by Seafood Norway which has just published its weekly update on key performance indicators for week 26.
5 reasons why it is a good idea to pay attention to harvest weights:
- When forecasting volumes, it is important to have an opinion on, and watch, the development in harvest weight. The weight can also have an impact on the achieved salmon price for different sizes of salmon. The cost per kg decline with increasing harvest weight, which is positive.
- Opposite, if salmon is harvested at a lower weight than optimal (caused by for example diseases, such as PD – see more on PD below), costs per kg will be higher.
- Also, with higher harvest weights, the fish farmer will, at any given volume level, require fewer fish individuals than planned. The excess fish individuals will be saved for harvest later in the season, hence increasing volumes but also adding to price pressure.
- In Norway, it is fair to assume that most farmers, i.e. food and protein producers like Marine Harvest, Salmar, Lerøy Seafood, Grieg Seafood, Cermaq, Scottish Salmon Company and Norway Royal harvest the at the average weight for the industry and therefore at the average salmon price.
- Bakkafrost (Faroe Islands), however, is “famous” for its large-sized salmon, which is typically between 5-6kg. Correspondingly, a high salmon price premium for 5-6kg fish is often considered positive for Bakkafrost.
One of the diseases that negatively impacts appetite and growth, and subsequently harvest weight, is pancreas disease (PD).
However, after many outbreaks during the summer of 2014, the Vetinst.no has published the PD-data for Jan-May showing a 40% Y/Y decline in the number of PD outbreaks in Norway .
Head over to my page on key health indicators for an updated status on the biological and sanitary conditions.