Meelis Vetevool, chairman of the supervisory board of fish processors M.V.Wool, said that the price of raw salmon has grown by 84 percent over the past year and fish is not expected to become cheaper again before the second half of summer.
He said that the price has been driven up by modest supply as several fish farms dialed back production in the coronavirus pandemic.
"Why is demand so high for Norwegian fish – farms in Scotland and Chile are producing less fish than is needed. Norwegian companies are exporting to the Americas and Asia, which is why the price has spiked," Vetevool said.
"The next generation will be ready by summer to suggest that pressure on prices could be eased in July or August," he added.
Vetevool explained that the price of fish plummeted in the wake of hotel and restaurant closures and it is likely farms miscalculated in terms of demand returning by spring.
"When the pandemic hit in 2020, fish prices slumped and they needed to get rid of their stock."
"The markets are bouncing back and demand for fish is high all over the world. There is simply not enough of it available and Norway cannot cater to global demand alone," the M.V.Wool executive said.
He added that the company has been forced to dial back production because price advance has hurt Estonians' interest in fish.
"Estonians cannot afford to eat their fill of salmon at these prices, and the same goes for the rest of Europe."
Vetevool said that the buying in price of salmon has grown by 84 percent on year, adding that while energy price hikes are also reflected in the final price, their effect is still negligible. "The price of fish accounts for most of it," he remarked.
Editor: Marcus Turovski