Greenpeace is calling on the Government to stop companies catching orange roughy after two major international retailers stopped selling the fish over sustainability concerns.
Orange roughy is caught by bottom trawling, and three of the eight stocks in New Zealand waters have been fished to collapse and closed after numbers reached critical levels, Greenpeace New Zealand oceans campaigner Karli Thomas said.
"The rest of the world is saying 'no thanks' to our unsustainable seafood, but our Government insists on continuing to exploit it."
Last week Trader Joes, a United States chain with over 300 supermarkets, confirmed it had stopped sales of orange roughy "based on customer feedback and in support of work to source sustainable seafood".
Last month Canada's largest retail chain, Loblaw, confirmed it had stopped stocking the fish, Ms Thomas said.
Since the start of 2009 four Canadian supermarket chains have stopped selling orange roughy and one has removed hoki from sale.
Last year Waitrose, the United Kingdom supermarket chain used by the royal family, announced it no longer stocked New Zealand-caught hoki as it failed to meet the store's sustainability policy, prompting headlines reading "No hoki for Queen".
"While we continue to fish using destructive fishing methods and pretend the quota system takes care of everything, our industry and officials will increasingly find themselves in damage control mode internationally," Ms Thomas said.
"New Zealanders are being short-changed by our government and our supermarkets when it comes to seafood. Sustainable seafood policies make environmental sense, and they make economic sense, in both the short and the long term."