Letter to PM - NZKGI Supports Kiwifruit Industry Structure

24 May 2013

Rt Hon John Key Parliament Buildings Private Bag 18041 Wellington 6160 New Zealand

Dear Prime Minister

NZKGI Supports New Zealand Kiwifruit Industry Structure

New Zealand Kiwifruit Growers Incorporated (NZKGI) is the national representative body for New Zealand’s kiwifruit growers.

We note with some concern the current media coverage on the kiwifruit industry and Zespri’s historical duty issues with its China importer.

Kiwifruit growers and the kiwifruit industry’s future success in a very competitive world market rely on the continuation of the single desk.

As this country’s kiwifruit grower representative body, NZKGI can assure you that growers overwhelmingly support the current industry structure and Zespri as its marketer. Zespri’s historical issues in a single market do not diminish growers’ support for the single desk selling model.

Despite the historical issues, Zespri’s business in China grew to over $100m in 2012, and growers know the future market potential is huge. This market’s potential value will be unlocked by the leverage and scale we achieve though our single inventory approach.

Zespri’s historical issues are before a court in China. On behalf of growers, who are rightly concerned, NZKGI is conducting an Inquiry into those issues. Growers expect answers from Zespri’s management and Board that will reassure growers that any management and governance issues that may have led to the current court case have been dealt with.

In the meantime growers are heartened by the continued increase in sales into growth markets such as China. These new markets have a vital part to play as growers battle to overcome and recover from the effects of the vine disease Psa.

Thank you to the Government for its continued support for our industry, including the recent enactment of the National Psa-V Pest Management Plan (NPMP). The NPMP is another tool that will enable the kiwifruit industry’s continued contribution to New Zealand’s future prosperity.

Yours sincerely

Neil Trebilco President

ENDS

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