Market Gap and drop, what have we missed?, page-33

Mind you, export prices hasnt collapsed or anywhere near collapsing. It is merely returning to historical “norm” following significant spike in prices because of lower production in norway, Chile, etc. The drop in prices is not because the demand is low but it is because of a short term and maybe even transient glut in supply, the demand part, however, is growing and remain strong. Export prices has less significance when it comes to tassal and Huon because of domestic market and if export prices are not satisfactory then they can turn to domestic market. It is true that the wholesale market may get flooded but as far as far as domestic consumptions are concern the demand for salmon is very high and is increasing around 10% per annum if I am not mistaken. Trickling price drop would cause disproportionate increase in sales that would readily take up the volume and subsequently lead to increase in profits. The crux of the matter is that volume is only bad IF THE DEMAND IS LOW, which is isnt the case here, it is strong and growing with the only bane being centred around affordability. Lower price = higher sale volume as people who normally don’t buy salmon become consumers.