Salmon price, page-3

Well yes and Tassal has been fattening up salmon expecting much lower prices and it turns out that current prices seems to be favourable. It was a clever decision from Tassal and there is no reason why it wouldn’t pay off. It is interesting that the current avg price for DEC is back to 2015 high despite the sudden spike in volume from norway. It really does underline how strong the demand side of things are for the product globally. For Australia, global pricing is of less a concern due to the much higher domestic prices. Producers here can sell to domestic market and fatten up stocks IF global pricing are low, which is not the case at the moment. Considering how salmon demand increases domestically at circa 10% per annum according to some analysts then the future looks bright indeed. Ramp up in future volumes, 17% for TGR, 33% for HUO and new independent domestic feed facilities (http://www.weeklytimesnow.com.au/ne...s/news-story/76efcf9df5718bf2eb93c35f517cc4be) to accomodate and help stabilize the politics around the industry. Even petuna is spending $70 million to expand into storm bay, they wouldn’t dare invest that much capital if the industry is not foreseen to be growing significantly, especially considering how small petuna marketshare is in comparison to HUO and TGR.