It had filed complaints with the governments of both the Netherlands and Chile.

"Raising salmon causes many environmental problems. The antibiotics used to combat disease, food remains and faeces of the closely packed salmon are polluting Chile's lakes and seas," the group said in a statement.

In a reaction, Nutreco said the complaints by Friend of the Earth had come as a surprise since both parties already had held several talks on environmental issues.

"We do not deny that there are always improvements possible," a spokesman said, adding Nutreco would fully cooperate if the complaints resulted in a probe by either the Dutch or Chilean government.

"We are facing the outcome of potential investigations with confidence," the spokesman said.

Nutreco, which states on its Web site (www.nutreco.com) it has a record of environmental monitoring and audits, has said it is at the forefront of "sustainable" companies that neither pollute nor deplete the environment.

In its 2001 Social and Environmental report, Nutreco said that before a fish farm or fish feed plant can be established in Chile, the company must carry out a detailed environmental report under regulations modelled on those of strict Swiss ones.

Friends of the Earth said Nutreco had built farms near the coast even though a five-mile coast zone has been defined for small-scale fishing.

The environmental group, which also said it was releasing a full report about Nutreco salmon activities in Chile, said the firm was violating OECD environmental guidelines on preventing and reducing damage and monitoring environmental effects.

It also criticised Nutreco's labour conditions and allegedly hindering of trade unions. Nutreco said that those allegations were totally unfounded.