Norway-based salmon giant Mowi has asked for an exemption from a law that makes it illegal for Norwegian companies to export low-quality fish without first processing it in the country.

Mowi CEO Ivan Vindheim said the current rule creates unfair market dynamics. "Personally, I hope this (ban) is something we can get rid of at some point."

Mowi communications consultant Ola Helge Hjeltland said it is now seeking an exemption because its facility in Norway lacks the capacity to process all of the fish it produces, and it wants to utilise its global facilities to process the fish.

In Norway, farmed salmon is graded as premium, average or production fish. Fish with any deformities are classified as production fish, and it is illegal to export such salmon without first processing it.

We have enough capacity (at our processing facilities), so we are ready to help, said Roger Hofseth, managing director of Hofseth International in Norway.

Other Norwegian seafood companies also disagreed with Mowi's recent move and urged the government to reject the request.

"I don't agree with Windheim. It's not about protectionism, it's about the reputation of Norwegian salmon on the market," said Robert Eriksson, CEO of Norwegian seafood trading group Sjomatbedriftene.

Eriksson says the record proportion of fish currently on the market for production use is a problem for the industry's reputation, and that any wrongs must first be righted in Norway.

Mowi's Hjetland admits that of course it is inappropriate to send product fish to customers and consumers, so talking about reputation is irrelevant.

The Norwegian Food Safety Authority (NFSA) recently announced that the percentage of product fish has reached a maximum level of 37 per cent.

Inevitably, companies with access to production salmon are getting it at a much lower price than regular and premium fish, leading to what some see as an unfair competitive landscape. The European Commission's trade arm, DG Trade, has been investigating the legal and economic aspects of the case since September 2023 and is about to develop an action plan on its next steps.