The Scottish Government objected to the move after the Faroes unilaterally increased its mackerel catch quota last year.
The Marine Stewardship Council (MSC) said the fishery was managed well, but Faroese inability to agree quota sharing with Norway and the EU stopped certification being granted.
Ian Gatt, Chief executive of the Scottish Pelagic Fishermen’s Association said: “ This will send a strong message to the Faroese that their irresponsible actions will not be tolerated because it threatens the sustainability of an important fishery that has been carefully nurtured by Scotland. It will also help consumers make informed choices so that they can ensure their mackerel purchases only come from sustainable fisheries, such as that responsibly harvested by Scotland”.
Scottish Fisheries Minister Richard Lochhead, said: “ We are pleased that our objection has been upheld, as it is clear that the Faroes is in breach of the criteria to be considered a sustainably sourced fishery. This sends a strong message to the Faroes that pursuing irresponsible fishing practices and grabbing an inflated share of the mackerel stock is unsustainable and no way to manage international fish stocks. This latest development once again illustrates that the Faroes should come back to the negotiating table”.
Mackerel is the Scottish fishing fleet’s most valuable stock.
The Faroes has tripled its usual entitlement to 85.00 tonnes, while Iceland, which landed very little mackerel before 2006, has allocated itself a 130,00 tonne quota for the year.
The countries argue that the mackerel stock has gravitated north in recent years but fishing leaders have condemned the move, warning it could be “disastrous for the Scottish fishing fleet.