China's demand offsets US market challenges for Norway

Norwegian seafood exports experienced a 3% increase in March, reaching a total value of NOK 15.5 billion (EUR 1.39), despite a significant decline in shipments to the United States. This marks the third consecutive month of reduced exports to the US, which saw a drop of over NOK 500 million (EUR 44.9).

US Market Challenges

The decline in exports to the US, which now accounts for only 9% of Norway's seafood exports, is attributed to increased tariffs and a weaker dollar against the Norwegian krone. Salmon fillets were particularly affected by these market conditions. However, the Norwegian Seafood Council noted that the overall impact was mitigated by strong growth in other regions, particularly China.

China and Asia Drive Growth

China emerged as a key growth market for Norwegian seafood, with exports surging by 68% to NOK 1.4 billion (EUR 0.13). This contributed to Asia's increased share of Norwegian exports, which rose by 5 percentage points to 23%. Europe maintained its dominant position with a 63% share. The demand for fresh Norwegian salmon was a significant driver of this growth, with exports to China increasing by 61% in volume. Other Asian markets, including Thailand, South Korea, and Taiwan, also showed strong growth.

Logistical and Market Implications

The ongoing conflict in the Middle East presented logistical challenges, particularly through increased fuel costs and altered air freight routes. Despite these hurdles, salmon exports to the region nearly returned to normal by the end of March. The strong demand for Norwegian salmon, even amid rising prices, underscores the resilience of this market segment.

Cod and Other Seafood Products

The cod market faced difficulties due to low quotas, with fresh cod exports falling by 31% in volume. This resulted in a record high price of NOK 105 (EUR 9.42) per kg for fresh whole wild cod. Conversely, snow crab exports reached a record performance, with the US remaining the largest market. Meanwhile, king crab exports fell due to reduced quotas and limited availability.

Overall, while challenges in the US market and cod supply persist, Norway's seafood sector continues to find growth opportunities in Asia and other regions.

Source