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Performance / July 24, 2020

2020 Kiwistart Rates

Following the decision on 25 March to remove Taste from the 2020 season the kiwistart rates were retrospectively changed to remove the Taste component. This resulted in significant changes to the rates that growers, who had already packed, had based their harvesting decisions on.

At the end of harvest Zespri wrote a paper to IAC to propose changing the rates to allow a similar OGR across harvest weeks. NZKGI forum had a significant discussion on the proposal and agreed that compensation was due to those who had packed up to the 25th March. Beyond this it was agreed that the amended rates stay. NZKGI didn’t agree with the Zespri proposed rates but reviewed 3 options for compensation, none of which were favoured by a clear majority but all met the principles agreed by the forum.

Zespri reviewed the three options provided by NZKGI but as two were related to compensating for Taste and there is no Taste in 2020 these were not supported and only one option was supported. Zespri provided a recommendation paper to IAC to compensate kiwistart growers who submitted fruit up to 25 March with the rates calculated as reinstating the original rates less the increase in fruit value resulting from less kiwistart paid out post 25th March. This was agreed by all parties on Monday 20 July. The paper can be viewed here.

The amended indicative kiwistart rates are here. Note this affects Gold, Gold organic and Green conventional rates. No green organic was packed at 25th March. 50% of the kiwistart rates will be paid on 14th August as per the Supply Agreement. The balance of the rates once updated for the August forecast will be paid 15th Oct per the Supply Agreement.

For any further information contact NZKGI here.