Controversy over fish oil industry in Peru hits Oslo listed companies

Norwegian Broadcasting Corporation NRK has been reporting on the condition of fish oil factories in Peru. The fish oil is used as the material in popular Omega-3 capsules. NRK has highlighted two companies listed in Norway; Austevoll Seafood (OSE: AUSS) via its subsidiary Astral Group and Copeinca ASA (OSE:COP) as having a major stake in the factories.

The story ran in a television programme called Forbrukerinspektørene (roughly ‘consumer inspectors’), a show which raises discussion on matters perceived interesting and important for consumers. Many governmental TV networks of Nordic countries have a similar format and many corporations have suffered greatly after being targeted by such shows. Oftentimes the programs follow a certain type of political agenda, self-interest of the producers and their inner circle but face none of the usual repercussions should the reports prove unfounded.

Forbrukerinspektørene raised concerns on waste handling of the factories. It also slammed the hygiene standards used in the handling of the fish catches and says that by the time the fish are used to make fish oil, they may already be putrid. A report from the Foreigner has more details on the claims. In the aftermath of the program, mainstream politicians became interested. The companies have received enquiries from health authorities and from Minister of the Environment among others.

According to the reports, Copeinca has promised to clean up its act. Austevoll Seafood however send out a stock exchange release dismissing the great majority of the claims. Austevoll says that the program links Austral’s factory into health problems caused on the people in the city of Chimbote but says that Austral does not even have a factory in the city. The release also goes on to refute other claims made in the program. the International Fishmeal and Fish Organisation also said the claims make no sense.