UPDATED 2.44PM: The Ministry for Primary Industries is deciding whether to let in 23-thousand tonnes of palm kernel, after the importer failed to provide the right paperwork.

The shipment is floating on a cargo ship several kilometres off Tauranga Port, amid fears its cargo is contaminated and could endanger the agricultural industry.

New Zealand law requires all palm kernel facilities be approved by the Malaysian government before being allowed into New Zealand.

The product is mainly used in New Zealand as an additive to feed on farms.

Director of Border Clearance Services Steve Gilbert said the shipment has come from an unregistered supplier in Malaysia, so they don't know what safety precautions have been taken.

"A key requirement for us is for the palm kernel to be processed to at least 85 degree celsius, and manufactured in a clean area free from any potential contamination and those types of scenarios."

MPI will make a decision on whether the cargo is allowed to dispatch, or be destroyed, within 48 hours.

Greenpeace spokesman Grant Rosoman told Rachel Smalley they want MPI to look at associated issues like whether it's sourced from deforestation activity.

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