A Nelson businessman has been blacklisted from exporting to China, after live bugs were found on a shipment of logs.
But Log exporter Leon Wood says it's a Bio Security disaster that has cost him, and others dearly, saying the fumigation system completely failed.
The problems began last month after an innovative decision by the businessman to send logs to China in containers.
The contract was worth nearly $2 million a month.
Logs are fumigated for up to 16 hours with Methyl Bromide, a deadly poison that should kill all bugs and insects.
But Chinese authorities say when a shipment of logs reached China, there were still live larvae and even live Huhu grubs still attached to the logs.
In a letter from the Chinese importer to the New Zealand Ministry of Agriculture and Forestry, they say that they found many dangerous pests including live beetle larvae.
But MAF say the consignment wasn't just rejected because of pests.
"On arrival in China, those logs didn't have the correct documentation that China required from the New Zealand Government, and so those logs were rejected," says Peter Thomson, acting Director General MAF Bio Security New Zealand.
However Leon wood says what's happened to him is a systemic failure and is laying the blame with New Zealand Bio Security.
"The service provider is supposed to re-check the container after it's fumigated to ensure that all the bugs are killed that hasn't happened," he says.
Wood says he is now seeking $10 million in compensation from the government for lost opportunity.
