Tasmanian salmon giant Huon Aquaculture has lost its Federal Court battle against rivals Tassal and Petuna and the Commonwealth over salmon numbers in Macquarie Harbour, reports

Huon Aquaculture challenged the 2012 decision to allow salmon farming expansion in the harbor, arguing it was invalid and had led to environmental degradation.

Rival companies Petuna and Tassal were parties to the case, and supported the minister's decision.

Duncan Kerr, judge of the Federal Court of Australia, dismissed Huon Aquaculture's application and ordered it pay legal costs.