March 8, 2017 / 10:25 AM / 6 months ago

Norway's farmed salmon growth regulation set for October despite objections

BERGEN, Norway, March 8 (Reuters) -

** Norway's new system for regulating capacity in salmon farming is on track for an October launch despite opposition from lobbyists, Fisheries Minister Per Sandberg told an industry conference on Wednesday

** Known as the "traffic light" system, the regulation will allow capacity increases in regions where sea lice levels are low, while areas with medium or high levels of lice risk a standstill or cut in output quotas

** The Norwegian Seafood Federation, which represents the interests of approximately 500 member companies in the fisheries industry, has earlier asked the government to withdraw the new model for regulating salmon output growth

** Norway, the world's largest salmon producer ahead of Chile, has struggled to raise output in recent years due to outbreaks of sea lice and disease

** The new regulatory system could potentially allow the Norwegian salmon farming industry an annual volume growth of 3 percent, but that's based on every producer being able to keep average sea lice levels below a limit of 0.2 per fish

** Norway's salmon production is expected to grow by about 2 percent in 2017 after falling by some 6-7 percent in 2016, several large producers have recently said (Reporting by Ole Petter Skonnord, editing by Terje Solsvik)

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