The Zespri Loyalty Contract is a key document for Growers and is a mutual commitment between a Grower and Zespri about the long-term supply of fruit between the parties. The contract is sometimes referred to as “Zespri Loyalty Contract”, “Zespri Loyalty Agreement”, or “Three Year Rolling Grower Contract”. They are all the same document.
The Zespri Loyalty Contract was first introduced in 2004, enabling a mechanism whereby a portion of Zespri’s corporate profit could be shared with Growers who entered into long term supply agreements (typically a three-year rolling contract) with Zespri. It also enables Zespri to negotiate longer-term agreements for logistics services and the payment structure helps to provide earlier cash flow for Growers by paying an earlier instalment in January after harvest.
To be eligible for the Loyalty Payment, a Grower must supply to Zespri all of their Class 1 kiwifruit from all properties they own or control, and contract services for their Class 1 kiwifruit with post-harvest operators that are registered with Zespri as Zespri exclusive Suppliers. Loyalty Payments are made to Growers who supply collaborative marketing programmes, with the exception of third party Plant Variety Rights (PVR) programmes where revenue flows directly back to the owner, not to the Zespri pool.
A copy of the 2018 three-year rolling contract with the full terms and conditions is available from the Zespri Canopy (www.zespri.com/canopy), by calling Zespri Grower Support Services on 0800155355 or emailing email@example.com
NZKGI’s Independent Guide to the Loyalty Contract can be located here.