Bakkafrost is reducing its value-added salmon production to avoid the impacts of tax changes implemented by the Faroese government, the company announced during its third quarter results presentation.

Earlier this year, the Faroese government approved a new progressive tax rate on the country's salmon farming sector, lifting the top tax rate to 20 percent.

The move is impacting its contracts for next year, with only 9 percent of its expected harvest volume now under contract across its Faroesese and Scottish operations, compared to 22 percent this time last year.