Norwegian seafood trade body calls for alternative to "traffic light" scheme for aquaculture

The Norwegian Seafood Industry Association Sjømatbedriftene is calling for a comprehensive review of the traffic light system that currently regulates Norway's salmonid farming industry.

In a recent statement, the association’s CEO, Robert H. Eriksson, argued that the system has failed to deliver on its core objectives and is urging authorities to consider new, more targeted tools for managing growth and sustainability in the sector.

The traffic light system divides the Norwegian coast into thirteen zones where production is regulated according to a set of environmental indicators, mainly sea lice levels, which determine whether farmers are allowed to expand (green zones), whether production is kept unchanged (yellow zones), or whether it is reduced (red zones).

Erikkson described the system as an "ineffective" measure that he said imposes high costs on producers without delivering corresponding environmental improvements. Citing the 2023 Aquaculture Committee report and research from Norway's Institute of Marine Research, Sjømatbedriftene argues that repeated production reductions have not improved the situation for wild salmon.

"The traffic light scheme has not succeeded in solving the real challenges of the aquaculture industry, neither in terms of sea lice nor increased food production from the sea," said Eriksson. "Now the authorities must stop prescribing more of the medicine that does not work. We need new and better tools in the toolbox."

The Sjømatbedriftene CEO also highlighted concerns about competitive fairness. According to Eriksson, the scheme places disproportionate risk on smaller, local operators, who may face production cuts even when maintaining strong sea lice control, in a situation he described as "collective punishment."

Fairness in growth allocation under the traffic light system is another point of contention for the trade assocation. While 1% of growth is automatically assigned to green production areas, 5% is auctioned off to the highest bidder, regardless of environmental performance or production location, the organisation said.

Instead, Erikkson called for regulatory frameworks that better incentivize sustainable practices and provide small, privately owned companies with increased operational flexibility.

"Smaller players must be given increased flexibility through fair arrangements for co-location and joint operations, also across production areas. They must also be able to combine joint operations and co-location, so that they can effectively utilize special permits such as R&D, exhibition and teaching permits," Eriksson argued.

The association also proposes introducing rolling Maximum Total Biomass (MTB) allowances for companies operating in three or fewer locations, and relaxing Section 19 of the Aquaculture Act, which currently bans leasing of licenses, particularly for smaller companies. It also says that authorities should prioritize local operators when allocating new aquaculture sites.

The proposals are expected to be further discussed during the upcoming Seafood Days conference on 25-26 March, where stakeholders from across the industry will gather to explore solutions to current regulatory and environmental challenges.

The Sjømatbedriftene CEO's comments come after other aquaculture industry stakeholders have also suggested changes to Norway's traffic light system.

In recent days, following the release of the Norwegian Veterinary Institute's annual Fish Health Report, Norwegian veterinary organizations have called for fish health and welfare to be incorporated into the traffic light system.

The Norwegian Veterinary Association, a professional membership association for veterinarians working in Norway, has proposed rewarding fish farming operators that achieve low mortality, with only the top 25%-performing operators allowed to grow, and said it supported the goal of 5% mortality proposed by the Norwegian government.

In January, the Norwegian government announced a proposal for farmers in red zones to increase their capacity by using closed containment aquaculture technology. The proposal is out for consultation until 20 March.