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Horticulture New Zealand will be forced to reconsider its budget after fruit growers in the country last week voted to reject an increase in levies.

The increase would have cost growers an extra NZ$120 (US$88.02) a year, but the move was outvoted three to one, meaning Horticulture NZ's annual income will be lowered by around NZ$400,000 (US$293,400) to NZ$2.1m (US$1.54m), Radio New Zealand reported.

Horticulture NZ president Andrew Fenton said the decision was indicative of the financial pressures faced by fruit growers and added that the body will now need to evaluate changes in its funding structure.

The chair of New Zealand's Citrus Growers' group Rick Curtis said the decision reflected both their tenuous financial position and some growers' concerns with certain aspects of Horticulture NZ.

However, Mr Curtis said his body has a good relationship with Horticulture NZ, and he hoped the organisation would be able to continue its work.