Australia exporters lambast Zespri

Kiwifruit Exporters To Australia (KETA) the group of New Zealand kiwifruit growers licensed to sell into the Australian market outside of the single-desk seller Zespri is up in arms over what it claims is Zespri's "interference" in its business.

KETA members have complained to the Horticultural Export Authority, the regulatory body overseeing licensing of horticultural produce, that Zespri has used its "monopolistic and privileged position in New Zealand to abuse the Australian business".

The Australian market is the only one in the world outside of Zespri's single-desk monopoly because of the Closer Economic Relations (CER) agreement.

The complaints follow Zespri forcing its 3,000 grower suppliers to destroy 1.5 million trays of class two green kiwifruit to sustain global prices in the slumped recessionary market.

And it plans to go further, cutting 2.5 million trays in total from the country's inventory this year.

In the Australian market, it asked growers to substitute the class two kiwifruit normally sold there with the higher-grade class one fruit.  The trouble with that, the KETA members claim, is the Australian market is unwilling to lift prices despite getting a higher-grade fruit and it could affect the commercial viability of the market.

One grower, Steve McManaway told NZ Farmers Weekly the "sharp as a tack" Australians were simply likely to chase higher profits by onselling the class one fruit to Asia outside of Zespri's control. And the KETA members were angry the move was made without first consulting them. 

KETA's discontent with the single-desk marketer follows produce company Turners&Growers lobbying  Government this week to have Zespri's monopoly smashed to unleash what it described as "unrealised economic potential."

T&G chairman Tony Gibbs is leading the rampage against Zespri after it snubbed T&G's efforts to export 340,000 trays of a new variety of kiwifruit to new markets in the United States, Mexico and Japan earlier this year. It could only sell into these markets through an agreement with Zespri but it opposed any collaboration.

Gibbs was so incensed he hired Australian economic consulting firm NERA to weigh up the case for disbanding Zespri and included its findings in submissions to the Government this week.  

In reaction to that move, Kiwi growers and packers, including many of the major players, have joined ranks against T&G, calling for the single entry point for exports to continue.

- © Fairfax NZ News