Norwegian salmonid producers will be able to bid for just over 17 tons of production spread over six green-light areas.
Photo: Adobe Stock.
Norway’s Ministry of Trade, Industry, and Fisheries has set the total growth allocated in the green production areas for the next farming permits auction. The number of tons that will be available for purchase will be 17,330. Finally, the figure has fallen short of the 21,000 tons the Ministry forecast in March when it set the new aquaculture traffic lights for 2024.
The traffic light system divides the Norwegian coast into thirteen production zones for salmon, trout, and rainbow trout where output is regulated according to a set of environmental indicators, mainly sea lice infestation levels. This year, two received a red light, which means that production is reduced; five received a yellow light, meaning production remains unchanged; and six received a green light, which allows them to expand production.
Earlier this month, when she reported that the auction date would be Monday, June 24, 2024, the Minister of Fisheries and Oceans, Marianne Sivertsen Næss, highlighted the value of these auctions, but also of the traffic light system.
"Aquaculture is an industry with high value creation that generates many jobs along the coast. The government will now offer growth in areas where the environmental situation is acceptable. This contributes to increased value creation, exports, and jobs in the districts," she said.
This year's six green production areas - 1, 9, 10, 11, 12, and 13 - will share the allocated growth of 17,330 tons, according to the following distribution:
Production Area 1: 1,125 tons.
Production Area 9: 4,861 tons.
Production Area 10: 3,319 tons.
Production Area 11: 2,761 tons.
Production Area 12: 4,765 tons.
Production Area 13: 499 tons.
Announcing the date of the auction, Minister Sivertsen Næss also said that these public sales are an efficient way of allocating permits and have historically secured significant revenues for the state and municipal sector. In this case, the minimum price at the auction will be NOK 170,000 (EUR 14.795 / USD 15.852) per tonne in all six production areas.
The Norwegian Directorate of Fisheries (Fiskeridirektoratet, Fdir, in its Norwegian name and acronym), has informed the auction format will be essentially the same as in the 2022 allocation round. It will be conducted as a simultaneous clock auction, and it will also have an option to submit exit bids.
To ensure everything runs smoothly, Fdir will conduct two test auctions before the official auction day. The Directorate of Fisheries recommends that registered companies - registration closed last Friday, June 14 - participate in the first of these test auctions to be held on June 18 at 9 am, and, if deemed necessary, also in the second on June 20, at the same time. Each test auction is expected to last approximately 3 hours.