A decision on the fate of 23,000 tonnes of palm kernel on board the bulk carrier Molat, anchored off Mount Main Beach, is expected to be made in the next few days.

The ship has been at anchor for a month, after being prevented from discharging its cargo when MPI inspectors learned an undetermined amount of its palm kernel comes from an unregistered supplier.

The Molat at anchor. Photo: Dominico Zapata, Fairfax NZ.

It means they cannot accept the cargo has been pastuerised as required.

Palm kernel extract is a byproduct of the palm oil industry and is fed to dairy cows in New Zealand. It is produced at high temperatures, which reduces the biosecurity risk from the palm kernel extract itself. The main biosecurity risk is contamination from insects or pests after production.

The Import Health Standard for PKE requires that for each consignment, certification and assurances are provided to state that:

• The PKE has been heat processed to at least 85 degrees Celsius.

• The PKE is stored in factories dedicated to the processing of the palm fruits and kernels, and kept clean and free of potential contamination following production.

• Official documentation with specific statements from the exporting country attesting to handling, storage and inspection of the product post production and inspection of the product prior to export are required.

• An inspection of the product has been carried out prior to export, and

• Fumigation is undertaken prior to or during shipment for all consignments.

In addition, PKE can only be imported from facilities approved and regularly audited in the exporting countries.

In a statement MPI says heat treatment of the cargo in New Zealand is an option. MPI is currently working with the unnamed importer to assess how this could take place and whether it is feasible. Otherwise the cargo will have to be destroyed or exported.

An earlier report stated the Molat was in North Sumatra on April 5 before making port in Malaysia. That could link the cargo to "highly controversial" palm oil plantations in North Sumatra that are linked to orangutan habitat destruction.

Statistics NZ figures show PKE imports peaked in the year to June 2015 at 1.94 million tonnes before falling to 1.86m/t in the year to June 2016.

A comment to SunLive states the Molat was alongside at the Mount Maunganui wharf for a week with at least one hatch open, before moving to the roadstead.

MPI has required PKE to be imported on from facilities approved and audited since June 2013. The Molat's cargo is the first it has stopped for failing to meet the requirement.