Photo: Stockfile/FIS

Market situation for Norwegian herring and mackerel

NORWAY
Friday, July 05, 2024, 06:00 (GMT + 9)

Decline for herring

• Norway exported 100,810 tonnes of herring worth NOK 1.7 billion in the first half of the year
• The value fell by NOK 160 million, or 8 percent, compared to the first half of last year
• The volume fell by 18 percent
• Poland, Denmark and Lithuania were the biggest markets for herring in the first half of the year

The explanation for the export reduction lies in the reduced landings of herring in the first half of the year.

"For Norwegian spring-spawning herring (NVG), landings fell by a whopping 75,000 tonnes, a decrease of 43 percent compared to the first half of last year. It is linked to a sharp quota reduction", says Jan Eirik Johnsen, responsible for pelagic species in Norway's Seafood Council.

In 2023, the quota was 388,000 tonnes, while in 2024 it is 256,000 tonnes, a reduction of 34 percent.

Demanding fisheries

"Although significantly smaller quantities of herring have been landed so far this year, there remains at the same time a lower quota for the autumn compared to last year. Last year there were 213,000 tonnes left for the autumn, while this year there are 155,000 tonnes left, which is 27 percent less", says Johnsen.

For North Sea herring, the quota has been increased by 29 percent, from 117,000 tonnes to 151,000 tonnes.

"Here, however, it has been a demanding fishery. The country has landed 3,500 tonnes less in the first half of this year compared to the same period last year", comment Johnsen.

Lower access to raw materials and good prices for residual raw materials

"Lower availability of raw materials and good prices for residual raw materials have meant that the shift away from exporting whole frozen herring to fillets has continued in the first half of the year", explains Johnsen.

48,000 tonnes of fillet have been exported, compared to 55,000 in the same period last year, a decrease of 13 percent. However, the value has increased from NOK 935 to 979 million, as the average price has increased from NOK 16.91 per kilo to NOK 20.20 per kilo.

For frozen whole herring, the volume in the first half of the year is 24,000 tonnes, a decrease from 47,000 tonnes in the same period last year, or 49 percent. Here, too, prices are up by NOK 14.64 per kilo, compared to NOK 12.56 per kilo last year.

Price record for frozen fillet of NVG herring without skin

"There is a price record in euros for the largest export product, which is a frozen fillet of NVG herring without skin. Here, the price reached EUR 1.79 in June. In comparison, the price in June 2023 was 1.52 euros, which means a price increase of 18 percent", says Jan Eirik Johnsen.

For the whole frozen herring, there is a new record in both kroner and euro in June this year. A price of NOK 13.96/kg and EUR 1.22/kg was achieved. That is respectively 7 percent and 10 per cent above the prices in June 2023.

For processed herring, there is a decrease in volume in the first half of the year compared to the same period last year. 3,400 tonnes have been exported, compared to 8,000 tonnes last year, a decrease of 58 percent. The average price is up from NOK 22.97 per kilo to NOK 24.87 per kilo.

A positive development for Lithuania, France and Latvia

Of the major fillet markets, exports to both Poland and Germany are falling. 20,000 tonnes, worth NOK 382 million, were exported to these countries in the first half of the year.

By comparison, exports in 2023 were 27,000 tonnes, worth NOK 455 million.

"For Lithuania, France and Latvia, however, there is a positive development. A total of 15,000 tonnes, worth NOK 312 million, were exported to these countries. For the same period last year, exports were 13,000 tonnes, worth NOK 222 million, a growth in volume of 15 per cent and in value of 41 per cent", says Jan Eirik Johnsen.

For whole frozen herring, Egypt dominates with 41 percent of all exports in the first half of the year. Here, the volume has nevertheless been reduced from 29,000 tonnes in the first half of last year to 10,000 tonnes this year. The value fell from NOK 340 to NOK 124 million.

This was the export of herring in June

• Norway exported 9,400 tonnes of herring worth NOK 199 million in June
• The value fell by NOK 128 million, or 39 per cent, compared to June last year
• The volume fell by 49 percent

Fall in volume and value for mackerel

• Norway exported 67,310 tonnes of mackerel to a value of NOK 1.6 billion in the first half of the year
• The value fell by NOK 388 million, or 19 per cent, compared to the first half of last year
• The volume fell by 32 percent
• South Korea and Vietnam were the biggest markets for mackerel in the first half of the year

Mackerel exports are characterized by significantly smaller quantities being landed in the first half of this year compared to the same period last year. This year, 40,000 tonnes were landed in the first half of the year, compared to 55,000 tonnes last year, a decrease of 27 percent

A 3-year agreement ensures predictability

"The most significant thing that has happened for mackerel in the fst half of the year is that Norway, Great Britain and the Faroe Islands have agreed on a 3-year agreement that determines shares between the countries. Among other things, it gives Norwegian fishermen the opportunity to fish 60 percent of the mackerel quota in British waters. The agreement provides important predictability, reduces fishing pressure on mackerel, and enables Norwegian fishermen to fish effectively for mackerel when the quality is at its best", says Jan Eirik Johnsen, responsible for pelagic species at Norway's Seafood Council.

Vietnam has become an important processing market

Good demand in the markets and falling supply due to quota reductions in recent years means that a price record has been set for mackerel under 600 grams. For this dominant product, the average price was 22.65 per kilo in the first half of the year. The previous record was in 2023 (NOK 19.68 per kilo).

"In Asia, we see that Vietnam is increasing in importance as a processing market, while it is falling correspondingly for China. Mackerel that has been processed in China has a 10 percent duty to the largest mackerel market, Japan, while fillets from Vietnam have zero duty", says Johnsen.

This was the export of mackerel in June

• Norway exported 5,900 tonnes of mackerel to a value of NOK 152 million in June
• The value fell by NOK 52 million, or 26 percent, compared to June last year
• The volume fell by 34 percent

Source: Norwegian Seafood Council

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