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Salmon production forcasting. By Frank Asche. Global production of farmed salmon and real Norwegian export price, 1981-2007. Global production of farmed salmon and real Norwegian export price, 1981-2007. Real Norwegian export price and production cost (2007=1). Productivity growth.
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Salmon production forcasting By Frank Asche
Global production of farmed salmon and real Norwegian export price, 1981-2007
Global production of farmed salmon and real Norwegian export price, 1981-2007
Productivity growth • The main engine for the increased production in salmon aquaculture is the productivity growth that reduce production costs, and makes it profitable to sell the product at lower prices • Market growth and product development has further contributed to the industry growth • The prodctivity growth is possible because the control of the production process • It also allow supply chain innovations
Market growth • Market growth has amplified the effect of productivity growth • Compare to sea bass • The market has become global • There is significant product innovation, leading to an increased number of market segments for salmon
Salmon (and other aquaculture products with declining prices) is competitive:Retail prices on selected food products and retail price index in UK
Concluding remarks • Salmon production will continue to increase because it is profitable over time • There are significant cycles • Partly, it will be caused by increased productivity growth, even though the rate is decreasing • Partly, it will be caused by market growth as product development continues • The only products I can see that can cause problems for the salmon industry in the long run, is more competitive new aquaculture species