Companies, directors fined $1.6m for altering tallow for profit
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A group of meat processing companies, directors and managers have been fined $1.6 million for deliberately and illegally altering exported tallow for profit, following an investigation and prosecution by New Zealand Food Safety.
Tuakau Proteins Limited, Taranaki By-Products Limited, Wallace Proteins Limited, Stephen Dahlenburg, Paul Drake, Glenn Smith, Glenninburg Holdings Limited, SBT Group Limited, GrainCorp Commodity Management (NZ) Limited and GrainCorp Liquid Terminals NZ Limited, were all sentenced on various charges under the Animal Products Act.
Tallow is rendered from animal fat into a range of products, and in this case, was exported for use in biofuels.
The defendants worked together to mix tallow with adulterants, including out of specification products containing unknown quantities of unknown various fats and oils, the New Zealand Food Safety deputy director general Vincent Arbuckle said.
"The price of tallow is based on its free fatty acid level (FFA) and the lower the level, the higher the price.
"By illegally adding other oils, the defendants were able to command a higher price by lowering the free fatty acid levels.
"Following a lengthy and complex investigation, food safety investigators found this offending was deliberate to maximise profits."
Arbuckle said these companies' directors and managers knew their responsibilities under the law.
"The rules for export are there for a reason - to ensure the product is fit for its intended purpose and meets the requirements of importing countries.
"While there was no food safety issue identified with the offending, people and organisations that deliberately try to get around the rules can damage New Zealand's valuable trade reputation which has been built over generations by high quality exports and backed by our robust food safety system."
The investigation was sparked by a whistleblower who notified New Zealand Food Safety that vegetable oil may have been blended with tallow for export.
"We followed up on the tip and the investigation broadened over time as investigators gathered evidence. They were eventually able to prove that several companies and individuals worked together to illegally export more than 8000 tonnes of non-compliant tallow.
"Tuakau Proteins Ltd, Taranaki By-Products Ltd, and Wallace Proteins Ltd all owned rendering plants that make tallow. These companies, managers and directors worked together to create this product.
"The prosecution was the result of a meticulous and long-running investigation which made connections between multiple defendants and proved deliberate offending."
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