September 23, 2016 / 1:52 PM / 2 years ago

UPDATE 1-Forecaster Kontali cuts Norway 2017 salmon output forecast

(Adds details)

OSLO, Sept 23 (Reuters) -

* Kontali Analyse expects Norwegian salmon output to rise 3.5 percent year-on-year in 2017, managing director Ragnar Nystoeyl told Reuters on Friday. The previous prediction was for a 6 percent rise

* Nystoeyl said the industry’s battle to get rid of sea lice, which attach themselves to the salmon, had triggered the cut

* Norway has a regulatory target of no more than 0.2 sea lice on average per fish

* Nystoeyl said producers are using exessive amounts of resources to achieve it

* Nystoeyl also says the wastage of fish is higher than expected, and that in addition infectious salmon anemia is also affecting output growth

* Nystoeyl also cut the number of smolt stocking by 3 million fish compared to the previous estimate, which he linked to the new regulatory regime for growth, which the industry has opposed

* For the current year Kontali sees a salmon output decline of 3.5-4 percent vs 2015, which gives a total 2016 output in the range 1.18-1.19 million tonnes in Norway

* Globally, Kontali expects an output growth of just below 4 pct in 2017, a slight downward adjustment from the previous prediction, after a drop of 7 pct in 2016

* Norway is the world’s top salmon exporter with volumes more than double that of second-placed producer Chile

* Leading producers include Marine Harvest, Salmar , Leroy Seafood, Grieg Seafood and Norway Royal Salmon

* Lower output and strong demand drove salmon prices up to more than 80 crowns per kilo in July compared to an average export price of 42.87 crowns in 2015

* Increased supply to the market has in recent week resulted in a price drop to current levels around 53-54 crowns per kilo

* Nystoeyl said Kontali does not forecast salmon prices but expects the demand-supply balance to continue to benefit producers

* Nystoeyl said high salmon prices could lead to lower demand from some segments in the market

* A strengthening of Norway’s crown currency could also affect the price on salmon

* The Norwegian Seafood Federation, which represents the interests of approximately 500 member companies in the fisheries industry, predicted earlier this week the industry will see flat year-on-year salmon output in Norway in 2017 after a 5-6 percent drop in 2016 (Reporting By Ole Petter Skonnord, editing by Terje Solsvik)

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