Optimistic investors are driving up the price of seafood producers’ shares, buoyed by rising prices for Norwegian salmon. Some debt-burdened producers are actually earning money again.
Salmon prices averaged NOK 18.81 per kilo two weeks ago and NOK 19.65 last week. Buyers are forking over NOK 25 for the largest salmon, and analysts claim that’s the level needed for producers to make money.
Some believe prices will rise to an average NOK 23-25 this autumn. That would also be good news regarding Norway’s relationship to the European Union, because Scottish salmon producers have complained that Norway’s prices were too low.
Rising prices can help Norway avoid charges of salmon dumping.
Investors, meanwhile, are jubilant after prices for shares in producers like Fjord Seafood, Domstein and Leroey Seafood Group have shot up in recent weeks.
Shares in Fjord Seafood have doubled, from NOK 1.20 two weeks ago to NOK 2.40 at mid-day on Tuesday. PAN Fish, which is technically bankrupt, has regained share losses generated by more bad financial news from the company last week.