Australis Seafoods proposes USD 80 million in compensatory actions for previous overproduction

Puerto Varas, Chile-based Australis Seafoods has filed several proposed compliance programs to address concerns raised by Chile’s Superintendency of the Environment (SMA).

The SMA has accused Australis Seafoods of producing more than 85,000 metric tons (MT) of farmed Atlantic salmon beyond what its permits allowed between 2014 and 2022, filing 21 sanctioning procedures against Australis, including 52 serious infractions for overproduction and five minor charges for other environmental breaches. The company now reportedly faces a total fine equivalent of up to CLP 178 billion (USD 222 million, EUR 203 million).  The charges, filed 25 April, came in response to both SMA's own investigations and overproduction self-reported by Australis.

Australis has previously said it remains confident it will not face harsh SMA sanctions. It referred to the SMA’s 2018 auto-reporting guide, which “allows the offender to opt for the benefit of an exemption or reduction of the fine that would be applicable with respect to the offense(s) that are the subject of the self-report.” Therefore, the SMA incentivizes self-reporting of violations by waiving all fines or offering significant reductions in fines for companies turning themselves in for overproduction.

The company has proposed more than 20 programs containing nearly 300 actions to compensate for the self-reported overproduction. The programs would cost the company a total of  ... 

Photo courtesy of Australis Seafoods