A leaflet in Germany which wrongly alleges that New Zealand sheep have scrapie is worrying Kiwi farmers.
The CMA, the body representing farmers in Germany, has delivered the leaflet to 30 million homes.
Meat New Zealand has started negotiations with the CMA to retract the statement and stop its distribution.
Germany is New Zealand's second biggest meat market.
New Zealand and Australia are the only two countries free of scrapie, a fatal disease affecting the central nervous system of sheep and goats.
Scrapie allegations worry NZ farmers
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