NZ kiwifruit set against deregulation

A potentially damaging stand-off between kiwifruit export marketing's single desk Zespri and international export giant Enza was brought back into the spotlight by a High Court ruling in Enza's favour.

The regulated New Zealand kiwifruit industry is concerned that Enza’s recent purchase of Kerifresh is a signal that the export giant will seek to market kiwis under its own brand, adding fuel to the fire of a legal spat between Zespri and Enza that began in 2007.

The legal action ended in defeat for Zespri, as the claims of the kiwifruit marketing desk that Enza's new logos were too similar to its own were thrown out by the New Zealand High Court.

Jeff Wesley, managing director for Turners and Growers Enza, commented: "If you look at the brands, in our view there is no way that could be confusing. As far as we are concerned Zespri was involving itself in anti-competitive behaviour which had little to do with the look of our new kiwifruit brands."

Wesley had already said the company’s kiwifruit outlook has changed it bought the citrus and kiwifruit grower/distributor KeriFresh, and orcharding company Kapiro in Kerikeri.

The purchases make Enza a significant supplier of fruit to Zespri. But rumours that deregulation is around the corner have begun circulating, and Zespri has warned this would lead to lower returns on produce.

Wesley denied that this is the direction Enza wants to move in. “Deregulation is not in the best interests of the New Zealand kiwifruit industry, but Turners and Growers Enza wants the right to export its own new varieties under a marketing arrangement alongside Zespri International,” he said.

“Deregulation in the apple industry in 2001 was a disaster for most apple growers and we would not want to see that happen to the kiwifruit industry. Whatever happens, we would not want to see outright deregulation.”