MV Molat, a cargo ship carrying a load of palm kernel or PKE, at anchor 4km off the Mount Maunganui coast.

A cargo ship banned from entering the country's ports due to fears it was carrying contaminated palm kernel will not be permitted to discharge its cargo in New Zealand.

The 23,000 tonne shipment is on board the MV Molat, which has been anchored several kilometres off the Port of Tauranga since September 6.

Imported palm kernel extract (PKE) is commonly used in animal feed on farms.

The Ministry for Primary Industries initially prevented discharge from the MV Molat after finding some of its cargo had come from an unregistered facility in Malaysia.

READ MORE: Border authorities block shipload of palm kernel feared to be biosecurity threat

Contaminated PKE could endanger the agricultural industry.

After considering an application from the importer to have the PKE treated in NZ, MPI announced on Tuesday that it would not allow the ship to discharge its contents in NZ.

"We spent a lot of time assessing whether there was a solution that would meet biosecurity requirements, but unfortunately nothing ticks all the boxes in terms of mitigating the risk of pests and diseases entering New Zealand," Steve Gilbert, MPI border clearance services director said.

MPI considered the amount of product involved, the availability of heat treatment facilities in the region, transport and storage, he said.

"My decision ensures that potentially contaminated PKE will not enter New Zealand."

MPI has strict biosecurity requirements for importing PKE. They include heat processing to least 85 degrees and that foreign facilities be approved and regularly audited by the exporting country.

Federated Farmers made it clear to MPI that it had significant concerns about the shipment being unloaded for treatment and therefore increasing the biosecurity risk to our industry, Federated Farmers biosecurity spokesperson Guy Wigley said.

They were happy to wave goodbye to the cargo load, he said.

"The importers of the cargo have been unable to find a way to satisfy the Ministry for Primary Industries' concerns about the shipment, and therefore it must go.

"If the paperwork is wrong, then the shipment can not be accepted into the country.

"New Zealand's primary produce exporters are very familiar with how this works at other countries' borders, and we should be no different on our own shores.



"We've worked closely with MPI on this and they have kept us informed about the process and the procedure they are following.

"In the end it was up to the importer to fix the mistake they made, without putting our nation at risk."

Molat left Port Klang​ in Malaysia on August 15 and the shipment, which has a current estimated spot price of about $250 a tonne, was worth about $5.75 million on the New Zealand market.

The ship had been in North Sumatra on April 5 before making port in Malaysia.