A puppy eating. The fungus in the corn used for Diamond's pet foods caused liver disease in dogs Photo: Carol Adams

Diamond Pet Foods of Meta, Missouri, is to compensate owners of dogs that were harmed by pet food recalled by the company in December 2005. The company has set up a $3.1m fund to reimburse dog owners who lost their dogs or who had veterinary bills as a result of contaminated dog food. The fund will also pay the cost of any unreturned food.

Corn used in the food was contaminated by aflatoxin, a fungus that infects crops during stressful conditions such as drought. Diamond Pet Foods uncovered the contamination after several veterinarians reported a high number of dog deaths from liver disease. Employees at the company's South Carolina plant failed to follow internal testing procedures, resulting in the contamination.

The USDA estimates that at least 76 dogs died as a result of the incident. Some veterinarians and dog owners believe the total could be much higher, as many owners did not see the recall notices because they coincided with the holidays, and dogs may have become ill some time after eating contaminated food.

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