However, Otago Fish & Game and Fisheries New Zealand, which is part of the Ministry for Primary Industries (MPI), is defending the requirement of marking fish prior to release as good practice that will preserve wild salmon fisheries.
The Dunedin Community Salmon Trust said in a statement its Sawyers Bay hatchery was closing because it was unable to meet release permit conditions imposed by MPI following consultation with Fish & Game.
The hatchery, along with the Otago Salmon Anglers Association, had been releasing salmon smolt into the Otago Harbour for more than a decade to provide a community fishery.
"With the closure of the hatchery the fishery will cease and the 100,000 smolt currently on site are destined for the landfill," the statement said.
"Fish & Game have imposed the condition that all fish that are released must be marked."
As a volunteer-run hatchery, it was unable to meet this condition.
It also hit back against the marking requirement, arguing there was no DNA profile for wild fish to back up the reasoning that hatchery-reared fish were genetically inferior in New Zealand.
"The trust’s marine science adviser has also stated that tagging will not stop hatchery fish breeding with wild fish, so the requirement to tag all fish is again questionable."
"The trust has sought explanations from MPI and Fish & Game but no credible explanation has been forthcoming."
Hatchery manager Roger Bartlett said the decision to close had been taken and the future of the facility was uncertain.
"At the moment it’s on the market ... If we can’t sell it as a going concern, then we’ll break it up."
The restrictions had been in place for two years, but the trust had tried to work its way around the conditions until now, he said.
Otago Fish & Game Chief executive Ian Hadland said it was a shame the "simple" condition could not be met.
"There is no objection to the smolt on site being released but the primary condition remains that they must be marked."
MPI had acted professionally by imposing conditions that were standard practice at all other hatcheries releasing into the wild for years, he said.
Its purpose was to identify salmon when they return to freshwater streams and prevent their use for breeding.
"The only motivation for Fish & Game insisting on good practice with hatchery-raised salmon releases into rivers and estuaries is to preserve the wild salmon fisheries on the east coast, which are seriously depleted."
Research from New Zealand and worldwide had proven commercially raised hatchery-reared fish were genetically inferior, and could compromise nearby wild populations.
The trust had declined an opportunity to source genetically superior wild stock for their operation, he said.
Scientific evidence had been provided to the trust, which had chosen not to accept it.
"The hatchery closure is unfortunate and thought to be based on the very poor returns to the harbour rather than due to Dunedin Community Salmon Trust’s inability to meet these conditions," Mr Hadland said.
Fisheries New Zealand information and verification director Monique Andrew said marking fish enabled an estimation of the survival rate and proportion of fish that move up rivers when fish were caught.
The trust had the opportunity to work with Fish & Game on how best to mark fish, and had known of its obligation to do so since 2020, she said.
