A group of specialist rendering companies, directors and managers have been fined a total of $1,629,500.00 for deliberately and illegally altering exported tallow for profit, following an investigation and prosecution by New Zealand Food Safety.

In a sentence released on Friday by the Manukau District Court, Tuakau Proteins Limited, Taranaki By-Products Limited, Wallace Proteins Limited, Stephen Dahlenburg, Paul Drake, Glenn Smith, Glenninburg Holdings Limited, and SBT Group Limited, were all sentenced on various charges under the Animal Products Act.

Tallow is rendered from animal fat into a range of products, in this case it was exported for use in biofuels. Its production is regulated under the Animal Products Act and exporters must meet domestic New Zealand standards with a Risk Management Programme (RMP) along with the rules of importing countries.

The defendants worked together to mix tallow with adulterants, including out of specification products containing unknown quantities of unknown various fats and oils, says New Zealand Food Safety deputy director general Vincent Arbuckle.

"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."

Mr Arbuckle says 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 8,000 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.

"Today’s result is a credit to the persistence and expertise of food safety investigators who stuck with what was a very complex case to bring the defendants before the courts. Their efforts send a strong message to those who would try to circumvent the rules for profit – we will pursue and prosecute," Mr Arbuckle said.

Meanwhile, two other companies, GrainCorp Commodity Management (NZ) Limited which is an exporter of fats and oils including tallow, along with GrainCorp Liquid Terminals NZ Limited which operates fats and oil storage facilities were also sentenced under the Animal Products Act. GrainCorp Liquid Terminals were convicted for breaching their risk management programme and being in possession for sale of animal product that was not processed in accordance with Parts 2–5 of the Animal Products Act. GrainCorp Commodity Management was convicted for failing to carry out duties of an exporter. While they were not involved in producing the adulterated tallow, the companies were fined a total of $258,000.

Sentence for each defendant.

• Tuakau Proteins Limited – $250,000.00
• Taranaki By-Products Limited – $240,000.00
• Wallace Proteins Limited – $150,000.00
• Stephen Dahlenburg – $52,000.00
• Paul Drake – $21,000.00
• Glenn Smith – $73,500.00
• Glenninburg Holdings Limited – $360,000.00
• SBT Group Limited – $225,000.00
• GrainCorp Commodity Management (NZ) Limited – $78,000.00
• GrainCorp Liquid Terminals NZ Limited – $180,000.00

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