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Organisational Docs / October 21, 2022

Frequently Asked Questions – Levy Renewal

What is the Commodity Levy currently collected on?

The levy is payable on all kiwifruit exported from New Zealand, excluding Australia. Kiwifruit is defined as any fruit of a plant of the genus Actinidia other than the species Actinidia arguta.

What is the current levy?

The current rate of the levy is 1.1 cent per tray ($0.0031/kg). It is calculated at the point of export.

How is the actual levy rate set?

The levy rate is set at the NZKGI annual general meeting, except in the first year following a levy renewal when the initial rate will be set in the levy referendum renewal. Voting rights at the AGM will be in accordance with the rules of NZKGI, which is one vote for every tray equivalent per landowner and one vote for every tray equivalent of kiwifruit exported. Where no rate is set at the AGM, the rate of levy from the previous year will be applicable.

How is the levy paid?

The levy is to be collected at the first point of sale which generally means it is paid by Zespri from the Grower pools.

How can levies be used?

Levies may be used for research and development, export market development, generic promotion, quality assurance, education and information, Grower representation, and administration. The levy will not be spent on any trading or commercial activity.

How are Growers consulted on how the levy is spent?

Growers are to be consulted on how the levy is spent through discussions at the NZKGI Forum and in communication to all Growers prior to the NZKGI annual general meeting.

How many votes are needed to renew a Commodity Levy?

Before the Commodity Levy can be renewed, the majority of Growers must approve the levy proposal. Approval will be sought through a Grower referendum in February 2023. The levy can only proceed if both of the following occur:

  1. The “YES” votes equal more than half of all votes cast, and
  2. The total tonnage of kiwifruit declared by Growers voting “YES” equals more than half of the tonnage of kiwifruit declared by all Growers who voted.

What should you do now?

NZKGI encourages you to give us your opinion on the future of our organisation throughout the consultation period and to talk to other Growers. Growers are welcome to contact the NZKGI office here or any NZKGI Forum member here. Growers are also entitled to write to the Minister of Primary Industries to express views in support of, or against, this proposal.

How long does a Commodity Levy last?

A Commodity Levy Order lasts for six years. It expires automatically unless renewed through a new referendum.