Norwegian Salmon Farms Face Record Fish Mortality Rates Amid Harsh Conditions

Norwegian salmon farms are grappling with record fish mortality rates, as reported by the Norwegian Veterinary Institute. The combination of a severe winter and the El Nino climate phenomenon has led to a 16.7% mortality rate, significantly impacting the industry. Warmer waters have exacerbated the threat of sea lice, stressing the fish and increasing their susceptibility to diseases. Companies such as Leroy Seafood are implementing measures like special underwater cages and extended land-based rearing of young salmon to combat these conditions. Despite these efforts, mortality rates remain high, with some fish perishing due to outgrowing their organs when moved to seawater.

The Norwegian salmon industry is vital to the national economy, contributing approximately 2% to the country’s GDP. Last year, Norway exported $11.2 billion worth of salmon. However, the government’s ban on exporting low-grade, wounded fish to maintain the industry’s reputation has led to domestic processing challenges due to a shortage of workers. Companies like Mowi and Grieg Seafood are upgrading processing facilities to meet this demand. As a result, salmon spot prices have declined, affecting market dynamics as supply constraints begin to ease.

The challenging climate conditions have prompted aquaculture data provider Kontali to revise its 2024 volume growth estimate for Norway and the global market to just 1%. Analysts from DNB and Carnegie predict that salmon farmers will struggle to meet their volume targets this year, with the summer season being crucial for achieving full-year projections. The reduced ’buffer’ in volume guidance underscores the importance of the upcoming harvest period, as highlighted by Arctic Securities.