Lower herring price reflects oversupply on market

EU - Europe's herring prices look to remain at their current low levels as a high supply and lower demand continue to affect the industry, according to a Food and Agriculture Organisation (FAO) report.

Prices for Norwegian herring have dropped considerably compared to 2005. As an example, herring in the 350g+ grade fell by NOK 2.50 per kilo in the course of one week in recent months.
" This is a familiar scenario in the herring industry, steep price increases are followed by a volatile price situation with prices adjusting downwards," the report stated.

Norway, which supplies the bulk of the EU's herring, has a high amount of the fish in storage. The large catch quota set for this autumn combined with increasingly hesitant markets will lead to lower profits this year, says Globefish, an analytical division of the FAO.

Source: Food Production Daily