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A NORWEGIAN scientist working for the country’s research body Nofima has argued that no Norwegian producer of salmon is sufficiently large to be able to influence the export price of fresh salmon to their advantage.
Thomas A. Larsen said: “This may mean that the markets perceive fresh salmon as a generic product and that they have equal preference for the various Norwegian producers and their product. If this is the case, the Norwegian Seafood Export Council has done a brilliant job promoting Norwegian salmon out in the markets."
Larsen has also analysed the use of contracts in the salmon industry and has found a widespread use of fixed-price contracts between players in the Norwegian salmon industry and foreign importers.
Even though there are at times large differences between the market price and the contract price, he says the total income for the industry has not been significantly affected by the contracts. However, for individual companies the contracts have had a significant effect, in a positive direction for some companies and in a negative direction for others.
His thesis finds that the price of salmon is controlled by supply and demand and no individual producer can affect the prices to an extent that is worthy of mention.
The use of contracts between Norwegian producers and overseas buyers is widespread, he says, which probably contributes to increased efficiency and reduced costs in the chain of distribution.
Larsen presented his doctoral thesis entitled “Aspects of Competitiveness in Norwegian Salmon Aquaculture” at the Tromsø University Business School this week.
Thomas A. Larsen, aged 36 years, grew up at Andenes in Nordland. He completed his Master of Science in 1999 and has worked as a market analyst in the business sector and as a scientist in the academic sector.
He has been employed as a scientist at Nofima in Tromsø since July 1.
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