An official investigation into allegations of animal mistreatment has uncovered some "very concerning" instances documented within an exposé's video footage.
The Ministry for Primary Industries (MPI) has finished the first phase of its investigation into animal welfare breaches connected to shearing practices.
Two weeks ago, People for the Ethical Treatment of Animals (PETA) released an exposé into 11 farms and shearing sheds, including Hunter Valley Station in Central Otago, owned by former American TV host Matt Lauer.
PETA's undercover video footage showed workers standing on a sheep's neck, dragging sheep across the floor, sewing up a bloody wound without painkillers.
Multiple investigations were launched after the videos were made public.
MPI's compliance and response director Glen Burrell, said a dedicated team has been analysing 235 video files and speaking with PETA, industry groups and farm owners.
"We have identified some instances in the video footage which are very concerning, and these are our focus in the next phase of the investigation," he said.
"There are a range of actions we can take in response, to ensure the protection of animals and to hold those who mistreat animals to account.
"In this case, it could include prosecution and disqualifying individuals from working with animals."
In a statement PETA senior vice president Jason Baker said they appreciated the ministry looking into the issues.
"However, we know from experience that most abuse goes unpunished for either lack of animal protection laws, politics or an unwillingness to hold major industries accountable."
The investigators had also made proactive visits to farms.
Before the investigation, MPI was working with wool sector groups to set up an oversight group to support good animal welfare practices and improvements in the industry.
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