The Canadian government's decision to halt salmon farming in a key area of British Columbia is disrupting the supply chain for a first-of-its-kind First Nations contract with retail giant Walmart.

Earlier this month, Canada announced it will not renew most salmon farming licenses in British Columbia's Discovery Islands, a blow to Norwegian giants Mowi, Cermaq and Grieg that operate in the area.

Mowi, the worst hit of the three by the decision, will lose 30 percent of its production in British Columbia, which amounts to approximately 10,000-12,000 metric tons of Mowi's total annual harvest volume from its Canada West division.