While longstanding seafood trade relations exist between the European Union and Norway, the European Commission must now take actions that address market distortions caused by unprecedented levels of Norwegian so-called “production” grade salmon entering the EU market in processed formats, according to the Market Advisory Council (MAC).
Composed of organisations representing the entire value chain and other interested groups, and co-funded by the EU, MAC provides advice to the Commission and member states on the market of fishery and aquaculture products.
MAC has highlighted that through the export of processed presentations like filleted and smoked, the Norwegian salmon industry has gained further market share in the EU market, while EU-based processors have lost access to raw materials and market share.
Norwegian law classifies farmed salmon into three quality categories: “superior”, “ordinary”, and “production”. The production-grade includes salmon with minor defects like wounds, deformities, or processing errors detected during inspection.
The export of whole Norwegian production-grade salmon is currently prohibited by Norwegian law. However, correcting defects at land-based processing facilities in Norway allows the fish to be transformed into a fillet product eligible for export. This correction process removes visible defects, permitting these fillets to be exported to the EU and other markets.
MAC explained that as defects are addressed during the filleting process, fillets from “production” grade are safe for consumption and indistinguishable from those made from “ordinary” or “superior grades”, meaning that the Norwegian export ban is no longer relevant from a food safety perspective.
In 2024, the share of production-grade salmon reached unprecedented levels, reaching over 35% of Norway’s farmed Atlantic salmon output over eight consecutive weeks, which contrasts with the historic 4-6% share of previous years. MAC said the permission to fillet such product is granted only to Norway processors, fillets made from production-grade salmon compete directly in the EU markets with fillets produced locally from “superior” or “ordinary” salmon.
The current price difference between these supply chains is approximately €4.30 to €4.50 per kg – a 30% discrepancy for fillets, in disadvantage of EU processors.
“Considering the total salmon harvest in Norway is estimated at 1.4 million tonnes whole fish equivalent, the 35% of “production” salmon represents around 370,000 tonnes and could potentially generate a competition of 220,000 tonnes of fillets against the EU processors,” MAC said.
The council is advising The European Commission to seriously consider this situation and suggests the application of product inspections both at origin and at arrival in the EU. It also suggests that if the export of production-grade fish continues to not be allowed by Norway, then Brussels should consider introducing taxes on imports of fillets that are derived from these fish.
In 2023, Norway was the EU’s sixth most important partner for trade in goods. On average for the 2021-2023 period, Norway annually exported 1,303,994 tonnes of fishery and aquaculture products to the EU, valued at almost €7.9 billion, corresponding to 24.8% and 27.9% of the share of Norway in EU imports in quantity and value, respectively.
The EU and Norway’s trade relationship on fishery and aquaculture products is influenced by a series of agreements, specifically the European Economic Area (EEA)’s Financial Mechanism, the Norwegian Financial Mechanism, and the protocol on temporary liberalisation of access to the EU market for some fish and seafood products. The relationship is also impacted by three EU-Norway fisheries agreements. After protracted negotiations, trade negotiations between the EU and Norway were recently finalised on the renovation of the EEA Financial Mechanism.
