"The danger is that the risk product could be carrying pests or diseases that could harm New Zealand's primary industries or natural environment.
"Untreated PKE poses a biosecurity risk to New Zealand. PKE is produced at high temperatures, which reduces the biosecurity risk. So the main risk is contamination from insects or plant pests after production."
Mr Gilbert said MPI could not provide details about the importer or speculate about their knowledge of the cargo.
MPI initially put in place a directive preventing the vessel from unloading and only recently received an application from the importer to consider treatment options, which was why it had been anchored offshore for so long.
Mr Gilbert said MPI would be making a decision about the fate of the kernel "very shortly".
For it to be unloaded in Tauranga, MPI had to be convinced that any treatment would mitigate the biosecurity risk. If it was not convinced, the kernel could be reshipped to another country or destroyed.
"In reality, reshipment is the only practical option if the vessel is not permitted to discharge."
Federated Farmers Bay of Plenty provincial president Darryl Jensen said the group was happy with the way MPI had dealt with the situation.
"They are following the processes that need to be done. The PKE will not be unloaded if it is not up to scratch. MPI has kept us in the loop with what's happening, they're doing their due diligence with the paper work and what's required for the product to be released."
Mr Jensen said there were potential biosecurity risks from the extract to the livestock industry as it could potentially carry diseases such as foot and mouth.
"We just don't know what could be in there."
Mr Jensen said PKE was used by Bay farmers, including himself, as a feed source for their animals when grass growth was low.
"PKE is one of the cheapest sources of food. It creates a lot of debate within our industry, whether we should or should not be using it. It's all personal choice."
Kiwifruit Vine Health chief executive Barry O'Neill said while palm kernel had no specific risk to the kiwifruit industry, the organisation supported MPI's actions.
"We expect imports into New Zealand to be fully compliant with our import protocols. Clearly, in this case, it wasn't the situation and MPI have taken out what we believe are the correct actions in not allowing the ship to be unloaded.
"The response is what we would expect to see happen and, as such, we fully support it."