Legal action is looming from farmers who have ended up with hairy mutant calves in their herds.
A group of farmers are angry at an artificial insemination company for supplying them with product for their artificial insemination programmes that contained a rogue gene.
Farmer Roger Blunt said it was sad the farmers had to resort to the courts as their best chance for compensation.
"The problem is only growing amongst farmers as they find that they actually have animals themselves," said Waikato farmer Roger Blunt.
Hamilton based company Livestock Improvement Corporation provides farmers with bull semen to use for artificially breeding top dairy cows.
However, the semen from one bull contained a genetic mutation and about 1500 of its offspring has been affected
The rogue gene means the calves are too hairy, have high body temperatures and cannot milk properly when they get older.
"We've just spent the time and the money and we should get something back for it," said Taranaki farmer Mark Muller.
The LIC initially refused to grant any compensation, arguing genetic defects are natural and happen regardless of the breeding method used.
They have since offered a credit for the insemination costs which it says is a good will gesture.
"It's only a fraction of what most people feel their animals are worth, just a few hundred dollars max, compared to $1,700 to $1,800 the animals are worth should they be exported," said Blunt.
The Commerce Commission has received one complaint and now some farmers are seriously considering legal action.
One expert says they could make a strong case.
"Under the fair trading act you'd probably be looking at the measure of damages being the difference between what they should have had, effectively being an export quality heifer, and what they've ended up with, which may be as bad as dog food," said lawyer Toby Braun.
LIC declined to comment to ONE News.