Ka-ching! Salmon farmers have a lot to be optimistic about in 2022
By Liza Mayer
Consumer demand for salmon will outstrip supply in 2022, a scenario that will keep prices at well-above-average levels, according to RaboResearch.
Global salmon supply is projected to grow by only 5 percent in 2022, a rate that is considered “below demand growth and thus supportive to prices.”
The think-tank says shifting consumer behavior because of the pandemic favors farmed seafood.
It said the increase in beef and poultry prices globally as well as consumers’ quest for healthier protein will drive seafood demand, and seafood could gain more traction if the industry expands product ranges to include more seafood in formats convenient to cook at home.
While the seafood industry is also feeling the sting of price increases, the reopening of foodservice channels will potentially trump inflationary challenges, it said.
Although there is clearly a need to fill the supply gap, it should be done sustainably, cautioned Novel Sharma, Seafood Analyst at Rabobank.
“For many countries, 2022 will be the year they make reducing GHG emissions their leading policy. With COP26 in Glasgow nearly coinciding with the GSA GOAL conference, commitments to reduce emissions are more than just top of mind for the aquaculture industry; they are a new key priority for many companies in the industry,” she said.