New Zealand's Livestock Investment Corporation says it was "extremely disappointed" to learn Elders had allegedly altered certificates of thousands of NZ cattle destined for export to China.
"LIC was not involved in, or had any prior awareness, of the alleged fraud referred to by FarmOnline," the company said in a statement.
"Despite this being a historical case, we are extremely disappointed to be informed of the alleged fraud as we take pride in offering a professional and biologically accurate service to exporters who want to obtain Three Generational Pedigree Certificates."
An independent investigation revealed the pedigree certificates for thousands of dairy cattle from New Zealand were altered by Elders employees from 2010 to 2013.
These breeding cattle were exported to China.
The alleged forgeries included using software to change PDF documents from NZ's LIC, which keeps a nationwide database of the pedigree of all registered cattle in New Zealand.
A PPB Advisory investigation found this involved:
- Changing the F status of cattle to F12 or better. (The F score is an indicator of cattle quality.)
- Adding missing sire and/or dam details for three generations to satisfy China's Ministry of Agriculture requirements.
- Adding or manipulating the age of animals.
Holstein Australia said it was a matter for Elders to address as to why the company allegedly provided false information to the breed association in order to gain pedigree certification.
"From a HA perspective based on your article this is an historic issue going back over a decade which was investigated at the time by Elders. Any questions on this matter should be addressed to them," Holstein Australia Chief Executive Officer Rohan Butler said.
The PPB investigation said it was unclear how long Holstein Australia was being provided with false information, but did state Elders had entered "approximately 30 dairy export contracts with Chinese customers" in the six years prior to 2014.
Meanwhile, Federal Agriculture Minister Murray Watt has moved to head off concern among Australia's trading partners over the alleged fraud.
"Our trading partners can be assured that the product we are exporting overseas is of the highest quality," Mr Watt said in a statement.
"The Department of Agriculture, Fisheries and Forestry certifies exports in accordance with importing country requirements," he said.
"These include any testing, treatments, isolation and examination required by the importing country.
"The Department does not have a role in commercial arrangements including matters such as pedigree certification."
China's Ministry of Agriculture has been contacted for comment on the issue.
The exclusive report on the alleged pedigree certification fund also came as details of an alleged $20 million fraud in Elders' livestock export division also emerged.
Got any information? Email: ed.gannon@austcommunitymedia.com.au
