A spokesman for the Rural Payments Agency (RPA) said the consignment failed to meet EU grading rules.
Mr Down said in addition to the waste, there had been a financial and environmental cost of importing the fruit. "They are perfectly fit to eat. These regulations come at a time when rising food prices are highlighted and we're being forced to throw away perfectly good food.
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"There is nothing wrong with its palatability, it's purely because it is slightly less than the prescribed minimum size." He said he was not even permitted by law to give away the 31 10-kilo boxes of kiwis to a school or hostel and faced a fine of several thousand pounds if he did.
Barry Stedman, head of the RPA, said the consignment had failed to meet the minimum standards for saleable produce, in contravention of EU grading rules.
Mr Down has been given a number of options, including sending the fruit back to the importer, or having them processed into juice.
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