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Kiwifruit regulations to be revised

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Kiwifruit export regulations are to be renewed, with the Primary Industries Ministry (MPI) seeking feedback on proposals to fine tune aspects that will help the industry take advantage of emerging opportunities for growth.
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The proposed changes to regulations, in existence since 1999 when ‘single desk’ exporter Zespri was created, were in response to the industry’s own review of its institutions and operations.

Kiwifruit NZ, the industry regulator, has welcomed the decision, acknowledging the New Zealand industry and the international fruit market were very different today than in 1999.

“This review is an opportunity to revitalise the process to ensure there is innovation and diversity in the international marketing of kiwifruit, new and emerging markets are developed and there are increasing returns to New Zealand growers,” Kiwifruit NZ said.

The proposed amendments in MPI’s discussion document relate to ownership of Zespri shares, Zespri’s core business and the funding and operation of the regulator, Kiwifruit NZ.

MPI has identified a growing misalignment between Zespri shareholders and kiwifruit suppliers and believes this development could impede Zespri’s ability to make decisions that benefit the industry as a whole.

MPI also believed changes were needed to allow Zespri to expand its range of activities beyond its defined core business without first seeking shareholder approval. Zespri activity has increasingly included research and development and licensing varieties to growers in Northern Hemisphere countries, including Italy where it envisages potential to realise 12-month supply.

Finally, the Ministry supports collaborative marketing being more central to the industry’s plans. Non-Zespri-instigated marketing initiatives have been static and there was a sense the process needed to be as open as possible to ensure innovative and diverse marketing was used to capitalise on the growth potential in emerging markets.

MPI is seeking feedback and consultation closes on Friday, March 25, 2016.

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