Legal and environmental disputes continue to mount around NZ Agri Development and its owner, Hui Zhi, following allegations of poor industry practices and alleged violations of environmental regulations at the company’s Tuturau facility in Southland, New Zealand.
The controversy began in late 2025 when multiple workers claimed they had not received wages owed to them, with amounts reportedly exceeding NZ$1,200 each and suggestions that others were similarly affected. Zhi rejected these claims, labeling them as baseless and providing documents that indicated contracts for the sale of calf and lamb skins valued at US$450,000 and US$300,000 respectively. However, these documents did not clarify whether employees had been compensated or directly address the alleged wage arrears.
Concerns escalated as the Southland District Council filed an application with the Environment Court on October 31, 2025, seeking interim enforcement orders against NZ Agri Development, Zhi, and associated parties. The council’s evidence cited offensive odours, visible discharges of blood, potential contamination, and vermin infestations at the site. A monitoring officer described the odours as “overwhelming,” at times impairing her ability to breathe through her nose. Inspectors also documented 283 intermediate bulk containers holding organic liquid fertiliser stored on the property.
In response, the Environment Court issued interim orders on November 21, 2025, mandating a halt to fertiliser production, restricting the intake of new animal skins and carcasses, and requiring proper disposal of existing organic material. These orders were extended in December due to delays in substantive hearings. Subsequent disagreements arose over whether Zhi could treat the stored material further, with Zhi asserting that additional chemicals were necessary before export, while the council contended this would constitute unauthorized industrial activity.
Additional court orders followed in March 2026 after the council raised concerns around earthworks and plans to mix liquid fertiliser with soil to create a solid product. The court directed the cessation of fertiliser operations and ordered measures to sterilize surfaces, eliminate bacteria, reduce oxygen levels, and facilitate gradual degradation of waste material. Zhi defended planned carbonisation processes, arguing they would absorb ammonia, deter rats, and serve as symbolic protest in conjunction with China’s national day celebrations.
Alongside regulatory actions, Zhi initiated a judicial review against Environment Southland and Southland District Council in the High Court. Filed on July 30, 2026, the application challenges the adequacy of council investigations into historic offal pits on the site, including their construction and potential impact on groundwater, and contests the consideration of alternative waste disposal methods. The judicial review remains pending and has not been decided in court.
Enforcement efforts intensified as Environment Southland laid seven charges against Zhi for alleged discharges of contaminants to land with potential water impacts between August 1 and September 26, 2025, including failure to comply with abatement notices. The Southland District Council has similarly filed charges against Zhi and NZ Agri Development. In a recent move dated September 9, Environment Southland secured additional interim orders requiring the cessation of carcass processing, the halting of unlawful discharges, and removal of animal materials and contaminated liquids from the site.
Throughout the dispute, Zhi has engaged in high-profile protests, including transporting deceased animals to council offices and making public appearances in attire symbolizing blood and factory conditions. His Facebook account, formerly used to publish graphic images from the Tuturau facility and document his disputes, was suspended for violating platform policies on account integrity.
Both councils have declined to comment publicly due to ongoing court proceedings. The next significant phase is scheduled for October 7, 2026, when the Environment Court will hear further enforcement applications and consider the Southland District Council’s request to revoke the resource consent for the company’s skin-processing factory. The court’s decisions may ultimately determine the future viability of Zhi’s operation.