This page will be updated as the Commodity Levy Process progresses. The last update was on 9 September 2011.

If you have a view on NZKGI's Commodity Levy Proposal, or NZKGI’s consultation you can make a submission directly to the Minister of Agriculture, Parliament Buildings, Wellington 6011.

NZKGI sent out a special weekly email update on Tuesday 6 September about the results of the Commodity Levy Support Referendum. Thanks to all those growers who participated in the referendum.

A copy of NZKGI’s Media Release on the result is available for download below.

The supporter numbers in a levy support referendum are measured two ways:

a) What percentage of voters said “YES” (87%), and
b) What percentage of the voters’ production did the “Yes” voters account for (85%).

This is counted two ways so that the Minister of Agriculture can be sure that most voters support a compulsory levy, but also the supporters account for a majority of the production that voted.

• If the vote was counted by number of growers only: there are risks of lots of small production growers making a decision that larger growers are not happy with, or
• If the vote was counted by production only: a small number of large production growers could make a decision that the smaller growers are not happy with.

The next step for NZKGI is to submit an application to the Minister of Agriculture for a levy to apply from the 2012 shipping season.

Voting papers were posted to all growers on Monday 15 August 2011. A list of Questions and Answers about the Levy is available for download below. A copy of the Covering Letter and Ballot Paper are also available for download below.

If you have not received your voting papers or misplaced your papers please make contact with NZKGI's Office on (07) 574 7139 or toll free 0800 232 505 and we will arrange for replacement voting forms to be sent out to you.

The following document has been posted to all Growers as NZKGI's August Industry News Newsletter on Monday 22 August 2011.

The following information was posted to all Growers along with NZKGI's July Industry News Newsletter on Monday 25 July. The full document is available for download below.

Here’s how the final levy proposal has been arrived at.

• In February 2011 the NZKGI Forum approved a Draft Levy Proposal for growers to give feedback on.
• In February 2011 all growers were sent a document on the Draft Levy Proposal and were asked for feedback.
• At the March 2011 Grower Roadshows the Draft Proposal was presented and growers were asked for feedback.
• NZKGI received 161 written submissions and many calls and direct feedback to Forum members. A large majority (over 90%) of the feedback was in support of the Draft Levy Proposal of a cent or less per export tray.
• In July 2011 the NZKGI Forum considered the feedback from growers and decided the following proposal will be put to growers in the August Grower Referendum.

What does this mean for you?
You already fund NZKGI via grower pools deductions. If the levy is supported by growers, it will be collected from ZESPRI grower pools and any other exporters’ grower pools. Growers will not notice any difference in the annual process. The existing funding is already divided across pools on a per-tray basis, so you will be no better, or worse, off as a result of the change to a levy. A key difference is that every six year growers will get the chance to vote on NZKGI’s funding including setting a maximum levy rate. This means growers will be able to place an upper limit on NZKGI’s spending for six years.

What does this mean for NZKGI?
It’s important that your grower organisation NZKGI is:

• Future proofed for the term of the levy order.
• Independently funded.
• Directly accountable to growers.
• Mandated by a grower vote.

A Commodity Levy Referendum places the decision for the organisation’s funding, in the hands of growers.

Currently the authority for NZKGI’s funding is contained in the Industry Supply Agreement between ZESPRI and Suppliers. The Supply Agreement is revisited every year. NZKGI needs more certainty, a stronger legal authority and a clear grower mandate for its activities. A Commodity Levy will provide this certainty.

NZKGI will not be employing more staff or commencing new activities as a result of this Commodity Levy proposal.

What is NZKGI?
New Zealand Kiwifruit Growers Incorporated (NZKGI) was established as part of the kiwifruit industry restructure in 1993 to represent kiwifruit growers and give growers their own voice in industry and to Government.

NZKGI’s Forum Members are elected by growers every three years.

The Forum appoints an Executive Committee to oversee NZKGI’s operations and the organisation employs three full time staff.

What does NZKGI do for growers?
In the July issue of NZKGI’s Newsletter, there is a section called “What does NZKGI do?” This document is available for download below.

What will the levy be used for?
The levy will be used to fund NZKGI’s activities which can vary from season to season. The table below is a breakdown of NZKGI’s anticipated first levy year spending. The indicated spending for the first levy year is $911,575. NZKGI’s actual spending for 2010/11 was $900,308 and the approved budget for the current year is $894,564. The first levy year indicated spend has been arrived at by leaving some amounts the same as the budget for the current year and other amounts adjusted for inflation (at 4%). (A copy of the 2010/2011 Annual Accounts is available for download below).

NZKGI’s Spending – per activity area for the first levy year*
The following table outlines NZKGI’s spending on NZKGI’s main activity areas after all anticipated costs including staff time, overheads and members fees are allocated to each activity area by estimated percentages.

*The first levy ‘year’ may actually be a 9 month period as NZKGI will be moving to a 31 December financial year end (currently 31 March). All amounts have been stated as annual amounts for clarity.

Next Step: The Referendum
In the August Referendum you will be asked to vote “Yes” or “No” to the above proposal. You will be sent a ballot paper that sets out everything you should know before casting your levy vote. The levy can only happen with majority grower support.