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AgVetLink: Number 58, October 2006

Prosecution: Unregistered Product

The first ‘plant compound’ prosecution brought by NZFSA under the ACVM Act has resulted in a conviction. Gro-Chem New Zealand Limited was fined $15,000 and each of the two directors $1500 plus costs after pleading guilty to knowingly supplying an agricultural compound under unregistered trade names (SAC, Bapsol, Wetter A and Spray Aid B).

The products in question all have the same active ingredient, 6-Benzyladenine or 6-BA, which is a wetting agent used on apple crops.  There are products with the same active ingredient already approved for this purpose in New Zealand and, as such, the use of the product posed no known food safety or health risk.

Approvals and ACVM Group Director Debbie Morris comments:

“The registration process places requirements on registrants of trade name products.  They must specify the active ingredients and the other components in the formulation, and they must comply with the relevant registration standards under the Act.  The relevant label claims for the product are checked and approved, and label conditions are imposed to assist in risk management.  This is the case even when two products are virtually identical but are sold under different brands. It is vital that this process be followed to ensure safety and ensure that users are provided with the most up to date information on how to use the product safely and effectively.”

“Gro-Chem and its directors knew that this was the case but chose to proceed with supplying unapproved agricultural compounds to a small number of customers even before they had started the registration process. In late 2003, NZFSA became aware that the product was being illegally supplied, immediately put a prohibition on any further supply, and began its investigation.”

Judge Broadmore noted in his sentencing that aggravating factors included using “four different names for the product, partly in order to avoid detection”, and said that “the defendants embarked on a deliberate and premeditated course of action to supply 6-BA to the apple industry”. He was also clear about the potential consequences to New Zealand’s international position as a trusted supplier of food, stating that he was in no doubt that “the breach of regulations designed to provide international assurance that export products are free from diseases, defects, residues and contaminants is a particularly serious matter. Reputations internationally for high quality agricultural produce are hard won, but easily squandered”.

Judge Broadmore also noted in sentencing that the defendants were all first offenders, had pleaded guilty at the first opportunity, and had fully co-operated with NZFSA during its investigation.