Media reports say farmers from around New Zealand sold cattle to Waikato-based Genetic Development (NZ) Exports Limited Partnership (GDEX LP).
The 12,300 head of cattle were destined for China at the end of April this year, however the shipment failed after the livestock carrier, MV Al Kuwait, built in 2016, broke down enroute to New Zealand to collect the animals.
A second, smaller ship was sent but could only fit 4,998 cattle on board, so farmers were given the choice to either sell the animals at a reduced rate or take them back to their own farm.
According to GDEX LP, around 40 farmers are collectively owed $1 million and the combined total direct costs and losses to the exporter are well over $5 million.
