After years of record-high salmon prices, the Atlantic Salmon market is finally experiencing deflation. Several factors contribute to this trend:
1) Increased harvests from the west coast of Canada: Companies such as Grieg, Mowi, and Cermaq will ramp up their harvests in 2023, increasing from one day a week to as many as five days, depending on the company.
2) Reduced demand after Lent: As Lent comes to an end in early April, there will be a corresponding decrease in demand for salmon.
3) Oversupply of sockeye salmon: The record sockeye salmon catch in Bristol Bay last summer has led to large stockpiles with national retailers. These retailers will now need to discount and promote sockeye heavily to clear the inventory of fish they could not sell during the winter before the upcoming summer season, which will decrease Atlantic salmon sales.
4) Central banks’ efforts to curb economic growth: Central banks worldwide are raising interest rates and attempting to “throttle down” their respective economies. This move is expected to theoretically decrease demand for salmon. These factors are creating a “salmon tsunami,” leading to lower prices in the short term and likely for the remainder of 2023.
Consumers can anticipate more affordable salmon options during this period, while retailers and suppliers may need to adjust to the changing market dynamics.