Zespri chairman Peter McBride believes the approval of amendments to the country’s kiwifruit export regulations will help position the industry for growth, as it looks to more than double sales revenue to NZ$4.5bn by 2025.
The New Zealand government announced that cabinet had signed-off on the amendments earlier this week. The regulatory changes represent the first major review of the regulations since they were introduced 17 years ago.
“The kiwifruit regulations have served the industry very well and extensive industry consultation showed more than 97 percent of growers support the industry structure, with minor changes identified to position the industry for the strong growth ahead,” McBride explained.
This announcement comes after a comprehensive industry review and consultation process called the Kiwifruit Industry Strategy Project (KISP), launched in 2014. The project included last year’s grower referendum, where two-thirds of New Zealand kiwifruit growers, representing 80 per cent of production, voted.
McBride said a key outcome from KISP was the desire amongst growers to amend the regulations to allow for a closer shareholding alignment with production and provide the regulator Kiwifruit New Zealand (KNZ) with a broader skill set and more independence.
“These changes to the regulations will enable Zespri shareholders to vote on amendments to Zespri’s constitution to align shareholding more closely with production,” McBride noted. “This ensures that New Zealand kiwifruit growers continue to own and control Zespri. Our roadmap towards closer alignment will be outlined at the Zespri Annual Meeting later this month.”
The government has also updated the definition of Zespri’s core business. In making these changes, the government has acknowledged that Zespri’s model has evolved, recognising that innovation, market development and marketing are essential in providing strong returns to New Zealand growers.
“I would like to acknowledge Minister Nathan Guy for his continued support of the industry through this process, and I would also like to acknowledge the positive engagement shown by the Ministry for Primary Industries,” McBride said.
Theregulatory changes are part of a broad range of initiatives agreed by the industry under the KISP review. Other changes either implemented or underway include the formation of a National Maori Growers Forum, a new proactive approach to collaborative marketing and an improved trading platform for Zespri shares.
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