A federal inquiry is examining ways to develop Australia's $1.5 billion aquaculture industry.

In a submission to the federal inquiry, the Fisheries Research and Development Corporation says that misinformation on social media poses reputational risks to the industry.

Tasmania's salmon farmers have been targeted for criticism, including through social media, after the book Toxic written by Richard Flannagan was published.

The book alleges that the salmon industry is ‘one big lie’ and that they use ‘harsh’ methods of animal management, degrade the surrounding natural environment, and that up to a third of salmon is “processed industrial chicken.”