Nordic Halibut seeing increased price premium for its farmed halibut

An operational update from Nordic Halibut indicates the company is seeing increased sales prices for its farmed halibut. 

Nordic Halibut produces farmed halibut in ocean-based production facilities in Midsund, Askøy, and Averøy, Norway. The company also recently received approval to construct a land-based halibut farm in Torjulvågen, Norway.

According to an operational update posted to the Oslo Børs, the company saw an average sales price of NOK 155 (USD 15.32, EUR 13.76) per kilogram in Q2 2023, an increase in price of 7 percent year-over-year. The average sales price for the entirety of H1 2023 ended at NOK 164 (USD 16.21, EUR 14.56) per kilogram, an 18 percent increase year-over-year.

The company said export sales prices also increased, reaching NOK 171 (USD 16.91, EUR 15.18) per kilogram, a 13 percent year-over-year increase. More importantly, the company said, the average export sales price for wild halibut from Norway was NOK 109 (USD 10.78, EUR 9.67) per kilogram – a 57 percent price differential compared to the company’s products. 

“The company is witnessing a growing willingness-to-pay and acceptance for farmed halibut in key export markets,” Nordic Halibut said. “As awareness of the outstanding qualities and attributes of farmed halibut products continues to rise, the price differential against wild halibut products also continues to widen.”

The company said that the price level indicates “strong potential” for higher prices, and that it is currently undergoing assessments of its long-term strategic considerations on how much biomass will be held at sea between periods to create a strong market presence while also achieving optimized prices and revenues. Larger-sized halibut, the company said, especially those sold at 7 to 9 kilograms or 9 kilograms and higher, are yielding higher prices.

“Consequently, the company's strategic commercial focus in the upcoming periods will prioritize achieving favorable prices and establishing a strong market presence,” the company said.

Nordic Halibut said it decreased its Q2 2023 harvest volume to optimize the use of its biomass, harvesting 151 metric tons (MT) of salmon, coming in at 135 MT head-on, gutted (HOG) weight. Total revenue for the quarter was NOK 21 million (USD 2 million, EUR 1.8 million) – up from NOK 15.1 million (USD 1.5 million, EUR 1.3 million) in Q2 2022.

The company added that it will release 1 million fish into its operations in 2023 to maintain its harvest targets. It said achieving the release will reduce risks associated with its 2026 production target of 5,000 MT, or 4,500 MT HOG. Harvest volume for 2023, meanwhile, will be 1,200 MT, or 1,080 MT HOG.  

Photo courtesy of Nordic Halibut