Tough fine issued over manure piles stinking out Hills town
Hundreds of complaints over a stench in the Adelaide Hills has triggered a tough environment court ruling.
Biological fertiliser company Neutrog has been fined $35,000 and convicted of “intentionally or recklessly polluting the environment and causing an odour nuisance” by the state’s environment court.
The high-profile fertiliser company has been in a years-long stoush with its neighbours in the Hills town of Kanmantoo, who told InDaily in October the town “smells like rotting flesh”.
Neutrog has confirmed it would not appeal the fine issued by the Environment, Resources and Development Court on July 10.
Meanwhile, a separate court case is ongoing as Neutrog appeals the terms of its license issued by the Environment Protection Authority (EPA).
Neutrog operates a composting facility at Kanmantoo containing piles of chicken manure. It is regulated to compost poultry litter in piles no larger than three metres tall, seven metres wide and 25 metres long.
The court found that, of 56 piles inspected by the EPA, 50 were over three metres. The tallest litter pile – which included “highly odorous” poultry excrement – was about 7.5 metres tall, the court found.
In the verdict handed down on July 10, Judge Michael Durrant found the company had breached its license and caused a nuisance that persisted for months.
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“Environmental nuisance is no less real because it is caused by odour,” Judge Durrant said.
“Odour can be pervasive. It can enter homes, workplaces and recreational areas. It can interfere with the ordinary activities of daily life.”
The Environment Protection Authority (EPA) received 718 complaints between November 2022 and April 2023 over the odour in Kanmantoo caused by the piles, the judgement said.
From January to March 2023, the EPA received about 18 complaints per day – residents saying the summer months were when the stench was at its worst.
A letter to InDaily from residents, none of whom wanted to be named, said “the last three Christmases and New Years have been stunk out”.
“We can’t hang our washing outdoors; it reeks of rotting chicken shit. We have to wash it again and use the dryer.”
The company was fined $35,000, along with prosecution, court costs and a Victims of Crime Levy.
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Neutrog made about $28 million in sales revenue in the financial year ending 2025 and has about $25.8 million in property assets, according to its most recent annual report.
The company made a profit of around $700,000 in 2025, boosted by an income tax benefit, without which it would have made a loss.
In a statement, Neutrog said it has “a critical ongoing role in the circular economy, supporting local farmers, businesses and community-based organisations while investing in R&D and creating jobs in the process”.
“We are fully committed to repurposing industry waste into world-leading, Australian-made products that boost plant and soil productivity across the globe, helping feed a growing population,” the statement said.
The EPA renewed Neutrog’s license in January 2026 – about six months after it filed legal proceedings against Neutrog over the too-tall manure piles and almost 40 tonnes of waste coffee grinds.
Neutrog lodged a separate legal appeal over its renewed license conditions in February, the company saying in a statement today that “as this is a current matter, we will not be commenting further”.
EPA Compliance Director Steven Sergi said the judge sent a “strong message” in his sentencing remarks and that the verdict is a reminder to all EPA-licensed businesses.
‘Human Beans’ breached EPA license
One of the charges brought by the EPA concerned a 2022 deal between Neutrog and Foodbank, dubbed the “Human Beans” project, which processed waste coffee grinds into fertiliser.
The judgement said the Foodbank cause was “noble”, but it was found to defy license conditions, which limited Neutrog’s composting to poultry litter.
“The charges brought by the EPA related to activities over three years ago and included the Human Beans project which was undertaken in good faith supporting FoodbankSA to provide meals to those in need,” Neutrog said in its statement today.
“Since that time, we have made changes to our operations as part of our continuous improvement program, including specific initiatives to further minimise odour, while engaging with the local community.”
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