All roads lead to Rome (aka Oslo)

January 19, 2018

"Mīlle viae dūcunt hominēs per saecula Rōmam" or “a thousand roads lead men forever to Rome” was said in the past with the meaning that different paths take one to the same goal. If we take a look at the salmon industry then we can say that all paths in the salmon industry lead to Oslo, Norway as Norway is the main exporter of the salmon and the leading companies are located there and the Norwegian currency is the reference currency for the exports of salmon.

The salmon industry has been going through turbulent times concering prices with downward prices from the high of nearly NOK 80/kg to the current prices of around NOK 55/kg. The Fish Pool Index™ is the main references source of current market prices for salmon.

If we then take a look at the weekly changes of prices and volumes for the exports of fresh salmon from Norway we can see that price range fluctuations differ depending on whether we are looking at volume or prices.

If the then check the correlation coefficient between these weekly volume and price changes we find out that the coefficient is 0,21 which indicates a farily weak relationship. This means that we weekly prices changes are not strongly dependent on the weekly changes in volume if we only try to measure the salmon price change in NOK for the export volume of fresh salmon from Norway. As expected then we should consider other variables and other exporters if we want to find out were all the roads lead to.

The Seafood Intelligence team will continue to follow these weekly salmon price and volume changes on markofish.com. For further information contact us at info@markofish.com.