Tuesday, July 25, 2017
Latest Rural News
 

Changes to kiwifruit regulations

Like it? Share it!

New changes to update kiwifruit regulations and help future-proof the industry will come into force on August 1.

Minister for Primary Industries Nathan Guy says the changes were announced last year and will help ensure the industry is best structured for future growth.

“These changes will give Zespri more options for promoting the ownership of its shares by active kiwifruit growers.

“They will give Zespri greater certainty for investing in activities such as research and development and in the marketing of New Zealand-grown kiwifruit, and ensuring that Kiwifruit New Zealand has the skill sets it needs to robustly consider collaborative marketing applications.

“These amendments won’t change the industry’s ‘single desk’ export framework, but will provide more certainty for Zespri’s shareholders and growers.

“These regulatory updates are the Government’s response to the industry’s self-review of its performance through the Kiwifruit Industry Strategy Project.”

Kiwifruit sales from New Zealand have reached record levels with 137.7 million trays sold in the year to March 2017, worth over $2 billion in export revenue.  Global sales revenues are forecast to reach $4.5 billion by 2025.

New amendments to the Kiwifruit Export Regulations will:

  • allow Zespri shareholders to consider setting rules around maximum shareholding and eligibility for dividend payments; 
  • clarify the activities Zespri can undertake as a matter of core business; and 
  • enhance the independence and transparency of the independent industry regulator, Kiwifruit New Zealand.

The amendments are the result of a substantial review of the regulations undertaken by the Ministry of Primary Industry (MPI) after the Kiwifruit Industry Strategic Plan (KISP) process and report.

KNZ has worked closely with MPI, Zespri, and NZKGI with the aim of ensuring the amendments provide a balance between providing for industry growth and innovation and regulatory protections.  

The key areas to impact on the work of KNZ are the definition of core business for Zespri, (which is expanded to include marketing, market development, and research & development of kiwifruit), the non-diversification rule, the introduction of two independent Directors on the KNZ Board, and KNZ’s reporting requirements which includes the introduction of a Statement of Intent. 

KNZ believes that these changes will ensure that the independence of KNZ is maintained, but also build on the work KNZ has been doing to better align its skills and expertise, while also providing greater transparency around our strategic intentions, performance, and funding, says Kiwifruit New Zealand chair Kristy McDonald.

"We believe we now have the people, policies and procedures in place to provide the independent professional oversight expected of us by the industry and the government.

"KNZ will continue to work closely with all industry stake-holders to ensure the amendments are implemented as smoothly as possible."

 


Comments on SunLive

There are no comments on this article.
 
©2013 Sun Media Ltd - All Rights Reserved
Sun Media