Chilean salmon farmer Nova Austral CEO Nicos Nicolaides will leave the company following admissions that it had misreported mortality rates to Chilean authorities. In light of these latest revelations, the Aquaculture Stewardship Council (ASC) said it would be terminating its logo licensing agreement with the firm as well.
In a statement on the company's website, Nova Austral confirmed the firm's CEO, Nicos Nicolaides, has been replaced and no longer has a role in the company. The company’s COO, Francisco Miranda, and Nicolas Larco, now the company’s CFO, will lead the firm.
A press report in June alleged that the company had knowingly mislead authorities through mortality rates in its reporting. This week, the Chilean fishery and aquaculture agency Sernapesca confirmed it would file claims against the company, and the firm also admitted “irregularities” in its reported information.
Nova Austral had been building its brand around antibiotic-free products and sustainability by harvesting salmon in the cold waters of Southern Patagonia.
In another development, the Aquaculture Stewardship Council (ASC) said it has terminated a logo-licensing agreement on all of Nova Austral’s products while it carries out its own independent investigation.
The ASC decision affects all of Nova Austral’s farms, not just the ones involved in this misreporting. Furthermore, the ASC said it will carry out a broader “risk-based and collaborative approach to determine whether there are broader compliance issues within the Chilean salmon industry.”
Upon notification of the termination, Nova Austral must cease using the logo and any ASC trademarks, halt sales of products showing ASC trademarks, provide a complete inventory of all labelled product to the ASC, and inform clients of the termination of the licensing agreement.
“The investigation by third-party independent conformity assessment body (CAB) Control Union Peru remains ongoing and may result in further action regarding the certified sites of Nova Austral,” the ASC said in a reléase.
In its statement, Nova Austral insisted that it will continue to focus on creating a sustainable product, and has scheduled a conference call with investors early next week to discuss the developments. To date the firms stock value has fallen 32.2 percent since its yearly high on 10 May, 2019.
