Alan Cleaver says the conditions imposed on his petfood business were unattainable.

A Waikato pet food company caught up in the bobby calf cruelty scandal has ceased trading.

Down Cow Ltd owner Alan Cleaver, who is due to appear in court on animal abuse charges, said his company was unfairly targeted by the Ministry for Primary Industries (MPI) after the footage of animal abuse by one of his employees went public.

The Te Kauwhata company, which picked up unwanted animals off farms around the Waikato, made pet food. It shut down on May 18.

Cleaver said MPI set out unattainable requirements and forced him to shut down. MPI, however, said it didn't force the company to close, just gave it notices of compliance.

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In November last year, Farmwatch and welfare organisation Save Animals From Exploitation (Safe) released secretly taken footage of abuse of calves in New Zealand.

The graphic footage shows bobby calves being picked up at farms and thrown on to trucks, plus kicked and bludgeoned, and then clubbed to death at an abattoir.

A Down Cow seasonal employee who is no longer with the company was included in the footage. Noel Piraka Erickson, 38, appeared at the Huntly District Court on Thursday and pleaded guilty to 10 charges of cruelty or ill treatment of an animal.

Cleaver said the MPI investigation into the abuse prompted regular visits by MPI representatives, who found consistent problems with how Cleaver was running his slaughterhouse business.

Cleaver said the company was unfairly targeted and penalised for procedures which, he said, were common and sometimes necessary among the country's farmers and slaughterhouses.

New Zealand Pet Foods Manufacturers Association secretary Richard Brake disagreed and said MPI's auditing procedures are thorough, robust and consistent.

Cleaver's wife and managing partner, Sheryl, understood the company needed to hire a manager if it was to reopen, an expense too great for the couple.

"We offered that we won't do calves," Sheryl said, "and we'd just do cattle, but [MPI] don't want to know. I think we've been unfairly treated because of that footage.

"We do calves the meatworks don't want. Other firms have told me they do exactly the same, but they're not victimised."

Cleaver added that MPI was "under pressure to do something".

"Common sense just goes out the door. We've been punished enough [with the court case] - the six permanent staff are all sitting at home.

"We were a growing business, growing and getting better, managing the place quite well, we were quite liked. I said [to an MPI representative]: You're causing an animal welfare problem by taking us off."

"A week before the owners made this voluntary decision [to close], MPI had served the company with a notice of direction," MPI spokesman Chris Kebble said. "This is a legal direction setting out corrective action required for the business so that it would be able to comply with the Animal Products Act.

"The act sets out the rules for the operation of risk management programmes such as pet food processors, to manage the risks to animal health and to ensure the products are fit for purpose."

The notice of direction came after it failed an audit.

"The company failed the audit after failing to respond to and act on concerns MPI raised with them about their operations. We are unable to provide information on specific compliance issues at this stage.

"In this case, Down Cow had every opportunity to ensure they took the requisite corrective action but chose to close down their business instead."

Out of nine pet food slaughter operators in New Zealand, eight are on the highest performance level with MPI. Only Down Cow was at the lowest. However, MPI failed to provide by deadline what performance level Down Cow was on before the Safe footage came to light.

Safe spokesman Hans Kriek was pleased MPI followed through with its audit.

"It certainly did not look like the company had high standards, at all. So from that point of view, it's probably a really good thing that they are closed. I certainly would not shed a tear."

​The Cleavers plan to sell the company once the court process is over.

* Down Cow Ltd is not associated with AC Pet Foods Ltd on Ohaupo Road, which has a similar phone number.