At a reception in New Zealand’s Parliament today, kiwifruit marketer Zespri formally thanked the country’s government for its support of the New Zealand kiwifruit industry since the re-introduction of export regulation in 1999.
The event, held in Wellington, was hosted by MP Simon Bridges and attended by Prime Minister John Key, along with a range of other government officials and industry figures.
Since the introduction of the Kiwifruit Industry Regulations in 1999, New Zealand’s kiwifruit industry has grown at around 10 per cent annually, Zespri said in a statement, making it the country’s fastest-growing primary industry. Kiwifruit is now worth around NZ$1bn (US$804m) to New Zealand.
“Twenty years ago, we were a fragmented industry with seven exporters out-bidding each other onshore and undercutting and price bargaining in the real marketplace,” said Zespri CEO Lain Jager.
“Growers realised their future lay in a new industry model and pulled together to ask the government to support a single point of entry industry model.
“Industry cohesion has given Zespri the confidence and certainty to make these significant investments in market-led research and promotions, supply chain management and innovation to ensure the New Zealand kiwifruit industry remains a world leader.
“We thank the then Labour government for its foresight in 1999 to support the Kiwifruit Industry Regulations, and we thank today’s government for its continued support for an industry model that the industry wants and overwhelmingly supports.”
Mr Jager also took the opportunity to outline the company’s plans to grow New Zealand’s kiwifruit exports to NZ$3bn (US$2.4bn) by 2025.
The event has drawn fire from rival horticulture company Turners & Growers, however, who sent an open letter on behalf of recently-departed chairman Tony Gibbs to Prime Minister Key this morning demanding he address Zespri’s single-desk export system, the recently-revived Zespri shareholder proxy votes scandal, WTO concerns and Zespri’s grower-owned status.
“We find it extremely concerning that the government is supporting this publicity stunt and further, that in doing so it is making a mockery of its own economic principles and of New Zealand’s work internationally to secure free trade,” Mr Gibbs said in the letter.
The two companies were due to meet in court this week for the second stage of Turners & Growers’ High Court challenge of Zespri, but the hearing has been delayed, reportedly due to illness in Turners & Growers’ legal team.
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