Ministry of Agriculture and Forestry officials have taken action over the poor condition of sheep on a large West Otago property leased to a North Island farmer.
The ministry's manager of animal welfare investigations, Alan Wilson, said when staff visited the Moa Flat property leased to the Tawera Land Company last month, they found insufficient feed for the "several thousand" animals on the property.
Mr Wilson said the farm was destocked with some animals sent to other properties for grazing, a management plan had been put in place and a vet appointed to regularly monitor the stock.
"Things are now under control, but it had the potential to be very serious.
"Intervention was required," Mr Wilson said.
Locals say the lessees went in to winter with insufficient feed for the number of lambs carried.
The Tawera Land Co has leased the 1300ha farm for the past three or four years.
It has invested a large amount of money sowing crops and resowing pasture, turning what was a rundown property in to a lamb finishing operation turning over 100,000 prime lambs a year.
The company is registered in Fielding.
Its sole director is Richard William Thurston and its sole shareholder is Kenneth William Thurston.
But the venture appears to have struck problems.
A West Otago local, who asked not to be named, said the lessee had a dispute with the farm manager and had outstanding bills, estimated at well over $50,000, owed to several creditors.
A South Otago business owner, who also asked not to be named, said he was owed $49,000 and had started legal proceedings to recover it.
At the time Mr Thurston took on the lease, a relative of his said the plan was to buy lambs for finishing for the export meat trade.
A manager with the Tawera Land Co said the stocking issue had been resolved and issues with overdue accounts were being negotiated.
Despite several attempts, neither Richard Thurston nor Kenneth Thurston could not be reached for comment.
The New Zealand Farmers Weekly last week reported that Kenneth Thurston, who bought the closed Longburn Freezing Works near Palmerston North, has had two companies placed in receivership by Farmers Mutual Finance, Advanced Logistics and Property Food and Technology.
A third, Aotearoa Coolstores, to which South Canterbury Finance is a secured creditor and reportedly owed $13.992 million, faces liquidation.