Research Market strategy
By Swissquote Analysts
Themes Trading

Catch of the Day: salmon soars as post-Brexit fishing feud continues

By Peter Rosenstreich
Published on

Related theme

The waters between France and Britain have been particularly troubled in recent weeks as the nations go head to head over post-Brexit fishing rights.

According to France’s Secretary of State for European affairs, Clément Beaune, more than 40% of French requests for fishing licences have been rejected by Britain. In response, Macron has threatened to punish its neighbour with measures including banning British fishing boats from unloading in French ports, carrying out additional licence checks, and reinforcing rigorous customs controls on trucks.

As the dispute threatened to overshadow the United Nations COP26 climate talks, Macron held off on imposing any sanctions with the intent of the two coming to a mutual resolution. This Thursday, British Brexit Minister David Frost is expected in Paris to meet with Beaune to discuss the ongoing fishing dispute.

Not too far from the English Channel, Norwegian salmon is swimming upstream, with stabilised prices that continue to increase despite ongoing logistical challenges brought on by the COVID-19 pandemic.

Having plunged during the pandemic, it appears salmon is back on dinner plates and menus, with European and Asian markets displaying an increased appetite for the fish. The NASDAQ Salmon Index in the weight class of 3-6kg has reversed its downward trend, rising +15% over the last four weeks.

The Norwegian Seafood Council released impressive figures this week: the first nine months of 2021 netted a total NOK 84.7bn (£7bn), 10% up on the same period last year, with salmon leading the way. The total figure for September was NOK 11.8bn (almost CHF 8.6 billion), the highest total yet for a single month.

Demand for salmon remains high, despite the political sniping and ongoing logistical challenges, proving that consumers are likely to continue to pay a premium for this high quality protein rather than look for an alternative.