KEY POINTS:
A company has been fined $10,000 for illegally importing a threatened species used to treat everything from asthma to impotence.
An estimated 62,000 seahorses were killed to produce a powder that made up half the contents of a 25kg drum imported into New Zealand by Christchurch's RMF Nutraceuticals.
The remainder was powder made from pipefish.
Border authorities seized the product when it was found to have no permit or certification. Under New Zealand law, seahorses are considered a species threatened by trade and a special permit must be obtained for importing them.
Seahorse powder is widely used in Asia in medicines and is said to be effective in the treatment of a range of illnesses, including mental disorders.
RMF Nutraceuticals stood to make about $3000 from the sale of the contents of the drum to a client in New Zealand.
The fine incurred by the company in the Christchurch District Court yesterday was only a tenth of what could have been imposed, but Judge John Bisphan found the uncertified importation to be an oversight by the company rather than anything sinister.
"This wasn't a case where the company had any direct effect on the killing of these animals or creatures. Of course, anyone involved with obtaining this powder and onselling it is encouraging people in dealing in these seahorses."
The company could have tried to get a permit for importing the product, but Judge Bisphan considered it unlikely a permit would have been granted.
It was possible the seahorses used to create the powder might have come from a seahorse farm in China, before going through Australia and into New Zealand. The company had also imported seahorse powder in 2000, but this was before the seahorse was listed as threatened.
Dean Russ, on behalf of RMF Nutraceuticals, said the company had never been prosecuted before, did not try to conceal the seahorse powder and was not involved in any "black market trade".
"It is not a fly-by-night operation. It is a company of substance."
The company thought the importation of the seahorse powder without certification was legal. "It got it wrong."
Mr Russ said seahorse farming took place on a large scale in China, with one company farming up to 50 tonnes a year.
