Sunland, the now closed peanut processing plant in Portales is in the process of dumping over 4-million dollars worth of peanut butter at the Clovis landfill.
The peanut butter was originally going to Costco Wholesale, before the plant shut down last fall.
However, Costco has refused to take shipment of the product, and will not allow the peanut butter to be donated, repackaged, or sold to brokers who supply food to institutions like prisons.
The president and CEO of Sunland Inc., Jimmie Shearer, says he does not like seeing the peanut butter go to waste.
"There is nothing wrong with the butter as far as being good product. But they won't let us sale it to anyone. They won't let us give it to a food bank, so they only thing that we can do to get the peanut butter out of here so the new owner can take over is take it to the dump."
Sunland Inc. Says Costco officials say they are rejecting the peanut butter because of leaky peanut oil.
We reached out to Costco officials ,but they did not return phone calls or emails for comment.