New Zealand's commercial fruitgrowers have rejected a plea to increase a levy on produce sold.Fruit and vegetable grower representative body Horticulture New Zealand (HortNZ) asked growers to approve an increase of about 1c on a $25 carton of apples and l
New Zealand’s commercial fruitgrowers have rejected a plea to increase a levy on produce sold.
Fruit and vegetable grower representative body Horticulture New Zealand (HortNZ) asked growers to approve an increase of about 1c on a $25 carton of apples and less than a cent on a tray of kiwifruit.
The increase would raise the levy from 0.11% to 0.15% of value, or $15 for every $10,000 in sales.
Vegetable growers already pay 0.15%.
When HortNZ’s commodity levy was imposed in 2007, it was intended fruitgrowers would pay 0.11% until 2010 and the organisation would also apply for grants from the Fruitgrowers’ Charitable Trust.
Those grants end this year and the intention was for fruitgrowers to pay as much as other growers.
More than three-quarters of the vote went against the proposed increase.
The no vote means HortNZ’s income of $2.5 million will drop $400,000.
As a result, the organisation’s board has signalled it now needs to consider structural changes.
HortNZ president Andrew Fenton said the result was a disappointment to the board and staff, but was not a surprise.
“We have to take this as a signal that these are not positive financial times for some fruit growers, and like them, we are expected to find further efficiencies in the way we operate.”
