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May 27, 2020 (newstodate): Norwegian salmon is a major export commodity for the country - but sensitive to market turbulence and state interventions.
One example is salmon exports to Taiwan that have seen a positive growth trend well into 2020 - but is now dampening.
-Until week 11, ending May 10, Norway's salmon exports to Taiwan were rising and showing positive growth, year-on-year. But from week 12, volumes have stabilized at 2019-levels and are now sliding back, compared to last year, says Asbjorn Warvik Rortveit, Norwegian Seafood Council Director South-East Asia.
-One reason may be higher logistic costs as the provision of cargo capacity has dropped leading to a spike in cargo rates, and a decline in market demand during the corona crisis. But driven by the same problems, the Australian government has implemented an International Freight Assistance Mechanism as a measure to help restore critical global supply chains which have been heavily impacted by COVID-19 containment measures.
-Supported by state subsidies to lower transportation costs, Australian salmon exporters to the Taiwanese market have gained in market share with larger volumes of fish, to the detriment of Norway's position.
-Also contributing to the decline in volumes to Taiwan is increasing competition from the wakening Chinese market that prefers the large 6-8 kilo salmon, now available from Norway and fetching attractive prices in China.
-Summing up, Taiwan has been an important market in 2020 for the Norwegian salmon that enjoys high consumer confidence in Taiwan. But changes in global market conditions, logistics and state interference still have an immediate impact on trends, says Mr Rortveit.
During the first 21 weeks of 2020, Norway has exported a total of 4,815 tonnes of salmon to Taiwan, still up 18 percent, y-o-y, but down 33 percent in week 21, compared to last year.