31 Jul 2013

Challenge to compulsory horticulture levies fails

2:40 pm on 31 July 2013

A challenge to the horticulture sector's compulsory levy system has failed to get off first base at the industry's national conference in Wellington.

Corporate orchardist Mr Apple objects to growers having to pay more than one compulsory levy to Horticulture New Zealand as well as the product groups to which they belong.

It called on Horticulture New Zealand at its AGM on Tuesday to seek agreement on a new method of funding beneficial industry activities, but the motion failed for want of a seconder.

Another proposal, from the J M Bostock group of orchard companies, was also heavily defeated.

It called for membership of Horticulture New Zealand to be based on product groups representing different parts of the industry, and not individual growers.

Representative Grant Sinclair told the meeting that the current multiple levy system is turning off grower participation and support.

He said the low grower response to last year's vote to renew Horticulture New Zealand's commodity levy was a wake up call.

"One of the issues that we found in talking to growers is that they struggle to see why we need two levies, to two different organisations, for industry good activities. Can't we all be a bit smarter and come up with something diferent?"

Mr Sinclair said the industry is at a cross roads and will see fewer and fewer people engaging with it if it does not change its approach.

Fruit and veg new weapon in retail wars

Meanwhile, the conference heard that fresh produce is becoming a new weapon in retail wars between supermarket giants.

In Australia, supermarket chains Coles and Woolworths have been using milk prices to compete head on.

Rabobank senior food and agribusiness analyst Marc Soccio said supermarkets are now focusing a lot more attention on fruit and vegetables as they look for points of difference to compete with each other.

He said they are picking up on the interest in TV cooking and food shows.

Mr Soccio says the world's biggest retailer, Amazon, is also rolling out on-line fresh produce services.