A YORK grain merchant sold seed to farmers that had not been officially approved as fit for use in the human food chain, magistrates heard.

Campbell and Penty Ltd sent out false invoices that did not include the name of the merchant from which it bought the pea seed, said Adam Birkby, prosecuting.

York magistrates heard the long-standing family firm based in Holgate Road had lost business from local farmers since its actions were exposed by DEFRA and had run up losses in both the last two accounting years.

Barrister Chloe Hudson, speaking on behalf of the company, and its director Andrew Penty, said there was no suggestion the seed had been unwholesome or damaged. The company had simply made a mistake in the time-saving and effort-saving measures it had adopted in 2010.

“This defendant (Penty) is deeply sorry,” she said. “He didn’t realise what he was doing was against the law. It was not only a small part of the business, but also not something he was used to dealing with. He made a mistake, a genuine mistake which he stopped immediately on it being pointed out to him.”

Mr Penty did not comment as he left court where both he and the company had pleaded guilty to six charges of marketing uncertified seed to farmers in March 2010. He was conditionally discharged for 12 months and ordered to pay £3,924 prosecution costs.

The firm, established in 1923, employs 12 people.

Mr Birkby, for DEFRA, said seed used in food crops had to go through a detailed certification process to ensure it was fit for purpose.

When farmer David Smakman was approached by Campbell and Penty Ltd and asked if he wanted some pea seed, he became concerned about the way the company was handling the sale and contacted the British Association of Plant Breeders. That led to a DEFRA investigation.

Miss Hudson said the company paid £96,000 in seed royalties a year under the regulations that included seed certification.

“The reputation of that business has inevitably been damaged by what had happened,” she said.

Mr Smakman had been a long-standing friend of Mr Penty, but now no longer returned his calls.