Animal welfare regulators on Monday launched an investigation into the brutal treatment of calves in the latest controversy to hit New Zealand's dairy industry.
The ministry for primary industries (MPI) confirmed it had begun a probe into the treatment of bobby calves after video footage was telecast showing the days-old animals being kicked, thrown and bashed prior to their slaughter, Xinhua news agency reported.
Bobby calves are the offspring of dairy cows, which have to give birth about once a year to keep them in milk.
MPI deputy director general regulation and assurance Scott Gallacher said the nature of the footage was unacceptable.
"Anybody seeing this type of abuse would be appalled. We share that view," Gallacher said in a statement.
New Zealand has very clear laws and guidelines for how animals should be treated, he said.
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The maximum penalty for wilful ill-treatment of animals was five years in prison and a fine of up to 100,000 New Zealand dollars ($65,510) for individuals and a maximum of 500,000 New Zealand dollars ($327,450) for a company.
Dairy giant Fonterra said it was taking immediate steps to deal with unacceptable mistreatment of animals.
Opposition lawmakers said the video threatened the reputation of one of New Zealand's most important export industries.
Animal advocacy groups Save Animals From Exploitation (SAFE) and Farmwatch, which obtained the video with hidden cameras, called on New Zealand and international consumers to ditch dairy from their diets.
Each season more than two million unwanted bobby calves were killed as young as four days old, said SAFE executive director Hans Kriek.