Norwegian Seafood Council – Poland is the largest importer of fish from Norwegian farms and fisheries
By Marek Grzybowski
It was the best August in the history of Norwegian seafood exports. Norway exported seafood worth NOK 14.6 billion in August this year. This is an increase of NOK 724 million, or 5%, compared to the same month last year. Poland was the largest market for Norwegian seafood, including salmon, in August.
August 2024 was a record export value for Norwegian fish producers. However, it should be noted that this effect was achieved thanks to the favorable exchange rates of the Norwegian krone for exporters. It is estimated that half of the total increase in revenue from fish exports, including to Poland, was achieved by Norwegians from favorable currency relations.
– Compared to last year, higher salmon volumes and a weaker Norwegian krone increased the value of Norwegian seafood exports in August. We also see that higher volumes of trout and mackerel contribute positively [to the financial result – MG], with the exception of the increase in shrimp exports, says Christian Chramer, CEO of the Norwegian Seafood Council.
Unfortunately, at the same time, the price of salmon measured in foreign currency has fallen, while we have had lower volumes of both saithe and cod, Chramer explains the sources of the record revenues of the Norwegian fish industry.
However, there are shadows of the weakening Norwegian krone. Business costs are rising and many seafood producers and traders “have to cope with an overall increase in costs. Expenditures do not necessarily match revenues,” notes Chramer.
Record August 2024
In August, Norwegians exported seafood to a total of 109 countries. This was 5 countries less than in August last year. The largest recipients of Norwegian fish in August were Poland, Denmark and the USA. On the other hand, Great Britain recorded the largest increase in the value of salmon imports from Norwegian farms. The increase in the value of exports to Great Britain reached NOK 161 million, or 24% compared to August last year. Over 13,000 tons of fish “sailed” to the Islands, 9% more than in the same month last year.
In total, in August this year, Norway exported over 125.5 thousand tons of salmon worth NOK 10.8 billion. Thanks to the weak krona, the value of deliveries to foreign markets increased by NOK 374 million, or 4% more than in the same month last year. Demand for salmon was generated by Poland, the USA and Denmark.
Germany stood out with its import dynamics of 37%, which resulted in an increase in export value of NOK 133 million for Norway. 5,556 tons of fish were delivered to Germany, which meant 26% more than in the same month last year – the Norwegian Seafood Council meticulously calculates. “Although this is a record month for Norwegian salmon exports, both in price and volume, the market trend is uncertain,” warns seafood analyst Paul Aandahl from the Norwegian Seafood Council and notes: “On the global market, we see that the value of imports in local currency is weakening in several countries. The lower import price in 2024 has not been compensated by a corresponding increase in volume. This applies to the USA, China and Thailand, for example,” Aandahl calculates.
Weak NOK, record 2023
Norwegian fish producers achieved good results in 2024 after the best 2023 in history. The export value of Norwegian seafood reached a record level of NOK 172 billion in 2023. Compared to 2022, the export value increased by NOK 20.7 billion, or 14 percent.
The export of Norwegian fish in 2023 is the equivalent of 39 million meals served every day throughout the year – experts from the Norwegian Seafood Council calculated graphically.
– 2023 was the best year in terms of the export value of Norwegian seafood. Seafood is still one of Norway’s most desirable global trade goods and has established itself as the country’s second largest export product, after oil and gas – said Christian Chramer, Managing Director of the Norwegian Seafood Council.
The growing revenue from the sale of fish to foreign consumers does not translate into full satisfaction of fish producers and traders. Since 2022, the Norwegian krone has weakened, which has led to a solid increase in seafood exports measured in kroner. However, the increase in euros and dollars has been much smaller. And these are the main currencies in which Norwegians trade in fish earn money.
“The weak Norwegian krone and the general increase in prices on the markets have raised the value to a record high. In total, the devaluation of the krone contributed to an increase in the value of exports of almost NOK 15 billion in 2023,” explains Christian Chramer.
Minister Cecilie Myrseth proud of the industry
— Although the krona is weak, which is the main source of growth in value [of fish exports – MG], it shows that Norwegian seafood is a source of interest abroad. The seafood industry has every reason to be proud – from the smallest shark fisherman to the people working in the largest aquaculture facilities – the Norwegian Seafood Council quotes Cecilie Myrseth, Minister of Trade and Industry (formerly Fisheries and Ocean Policy).
Seafood exports from Norway in 2023 amounted to 2.8 million tonnes, which was 5% less than in 2022. Norway’s two most important seafood species, salmon and cod, saw a decrease in export supply. Fishermen also recorded a weak performance. Volumes in the pelagic sector, including mackerel and herring, were the lowest since 2016. This is a result of the established catch quotas.
— Our wild-caught species are subject to quota regulations that can affect their production. In 2023, there was a 20 percent reduction in the cod quota, which resulted in a decrease in catches, explains Christian Chramer.
Thanks to the weak krona, the export value of most cod categories increased. Similar results were observed for mackerel sales. Here, too, Norwegian fishermen ended the year with lower catches but record high export values. Salmon remains Norway’s flagship product. It is the main source of revenue for Norwegian seafood exports.
— In 2023, Norway exported 1.2 million tons of salmon worth NOK 122.5 billion, which was 71 percent of the total value of all seafood exports, says the Norwegian Seafood Council, calculating that “16 million Norwegian salmon meals were served worldwide every day last year.”
The market is based on farming. Aquaculture accounts for 75% of Norway’s total fish exports in value and 46% in volume. In 2023, Norway exported 1.3 million tonnes of aquaculture seafood. The value of these exports was NOK 128.7 billion. The volume of aquaculture seafood exports decreased by 1.1% compared to the previous year. However, the value of these exports increased by NOK 17.6 billion (16%) compared to 2022.
Poles buy the most fish from Norwegians
At the beginning of 2024, Christian Chramer was pessimistic about the situation of Norwegian fisheries and farmed fish producers. He noted in January last year: “On a day when we celebrate a new record in the value of seafood exports, it is important to remember that this does not mean solid financial results for seafood companies.”
Norwegian fishermen, both farm and pelagic, are plagued by plagues related to the weakening economy. These include: rising costs, the fight against weakened consumer purchasing power and a changing global market. Norwegian products are being replaced by competing producers, mainly from Asia and North America. “Norwegian seafood still does not sell itself,” notes Chramer.
The decline in seafood consumption in Norway is causing concern. Although it should be noted that in hotels and at conferences, tables are bending under the weight of fish from Norwegian producers. The negative trend and changes in the diet of Norwegian consumers were noticed by Minister Cecilie Myrseth, who pointed out that the falling consumption of seafood in Norway is a challenge for the government and producer and consumer organizations.
“We need to increase our efforts here at home, because we have never eaten less fish than we do today. Seafood is both sustainable and healthy, so we need to reverse this trend and eat more of it,” Myrseth appeals.
Norway exported seafood to a total of 153 countries in 2023. This was six countries more than in 2022. Poland, Denmark and the USA were the largest markets for Norwegian seafood exports in 2023. Poland recorded the largest increase in the value of Norwegian fish imports. 277,745 tons of fish worth NOK 3.2 billion reached Polish processing plants and stores. There was only 4% more fish, and we paid 21% more for it compared to the previous year. The situation may repeat itself in 2024.