Oslo, August 10 (FFN) – Norwegian salmon farmers are grappling with the adverse effects of the El Niño climate pattern, which has led to record fish mortality rates. The industry is also concerned about long-term forecasts of hotter summers. FinanceFlashNews reports on this based on a Reuters article.
The El Niño phenomenon, a periodic warming of ocean surface temperatures in the central and eastern tropical Pacific, has contributed to rising global temperatures. Coupled with the worst jellyfish attacks in 20 years, this has resulted in a record 16.7% fish mortality rate in Norway this year, according to the Norwegian Veterinary Institute.
Norway is the world’s largest producer of farmed Atlantic salmon, accounting for around 50% of global production. Farmers are hoping for a “healing summer” after a challenging first half of the year.
However, record high temperatures and warmer waters increase the risk of sea lice infestations in salmon farms. Treating these parasites often stresses the fish, making them more susceptible to other diseases, warned DNB analyst Alexander Aukner.
To protect their fish, companies are testing special cages deep in the sea to keep sea lice at bay. Farmers are also keeping young salmon in land-based facilities longer to shield them from harsh climate conditions, although this has not improved mortality rates.
In a bid to protect the industry’s reputation, Norway has banned the export of injured fish, classified as low-quality salmon.
This has forced farmers to increase domestic processing of lower-quality salmon into premium products like fillets or smoked goods, which can be legally exported.
Before the ban, unprocessed fish were smuggled across borders to European markets, but now farmers must sell surplus injured fish at a discount to third-party processors.
Those with filleting capacity are now facing labor shortages to handle the increased volumes. Global giant Mowi and smaller rival Grieg Seafood are upgrading their processing facilities to address this, but spot prices for salmon have been falling due to the increased availability of premium products.
Despite farmers’ efforts, analysts doubt the industry’s ability to maintain production volumes.
Kontali, an aquaculture data provider, has revised its growth forecast for Norwegian and global production in 2024 to just 1%. Experts expect many farmers to struggle to meet their volume targets this year, with the summer being crucial in determining annual volumes.
