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A 20 per cent cut in funding has forced peak industry body Horticulture New Zealand (HortNZ) to restructure this week.

The organisation has laid off 1.5 full time equivalent staff, reported Radio New Zealand, cut back directors’ fees and reduced its policy development and research work.

The 20 per cent cut in HortNZ’s funding – equalling NZ$500,000 (US$377,000) a year – stemmed from the loss of grants from the Fruitgrowers Charitable Trust.

HortNZ last year proposed an increase in fruit grower levies to bring them in line with those paid by the country’s vegetable growers and covered the grant cut, but the move was voted down. The levy would have cost growers an extra NZ$15 per NZ$10,000 of sales.

HortNZ’s CEO Peter Silcock said the organisation would divert some of the higher levies paid by vegetable growers to a special fund for the sector.