Two former rivals, Zespri and Turners & Growers have today signed a Memorandum of Understanding, confirming their intention to work together in future.

Zespri Chairman Peter McBride and T&G Global Chairman Professor Klaus Josef Lutz signed the MOU early this morning NZ time at the fruit industry trade show Fruit Logistica in Berlin.

Zespri Chairman Peter McBride and T&G Global Chairman Professor Klaus Josef Lutz sign a Memorandum of Understanding to work together.

NZX-listed Turners & Growers is majority owned by German conglomerate BayWa.

However, under its previous management and ownership, the company had for many years taken political and legal action in attempts to get rid of the single desk marketing structure under which Zespri operates.

Doug Brown, chairman of New Zealand Kiwifruit Growers Inc, says today's signing of the agreement is a positive move for the kiwifruit industry.

'Under its previous ownership and management T&G had a clear agenda to undermine the SPE and destabilise the industry.

'Obviously the change of management and ownership there is clearly a wish to work with Zespri rather than against it and this has to be positive.”

As part of the recent Kiwifruit Industry Strategy Project, New Zealand growers clearly indicated they wanted a more robust and workable collaborative marketing structure and this agreement is part of that process says Doug.

'T&G has obviously convinced Zespri and the regulator Kiwifruit NZ that they genuinely want to operate collaboratively in partnership with Zespri.

"In the past Zespri and KNZ has received some flak for turning down T&G's collaborative making applications but I believe they were probably not genuine collaborative proposals.”

The first step in this collaboration includes regulatory approval of a new initiative: the two companies will work together to sell around 1 million trays of Zespri Kiwifruit in Thailand, Cambodia, Myanmar and Laos in the 2016 season.

T&G will open an office in Bangkok to represent and support the two companies' sales programmes.

The new team will work together to grow sales of both Zespri and T&G branded products like JAZZ and ENVY apples in the region, with a regional manager already appointed and key account managers appointments to follow.

T&G's Professor Lutz says that, as two large New Zealand horticultural exporters with strong global brands, Zespri and T&G have committed to develop market opportunities together to grow export sales.

'This is a positive collaboration between two large New Zealand exporters,” says Professor Lutz.

Peter McBride says both companies are major contributors to the New Zealand economy and offer premium branded products supported by innovative marketing.

'This MOU formalises our intentions to look for opportunities to use our respective strengths to grow sales.”

'This proactive collaborative marketing partnership will accelerate the growth in kiwifruit sales across a region with huge potential.

"T&G will develop sales programmes for Zespri Green, Zespri SunGold and T&G products in these four Southeast Asian countries, leveraging the strength of the Zespri brand and marketing strategy with T&G's existing business expertise, distribution channels and strong product offering,” says Peter.

This collaborative arrangement is the first of its kind to be approved by regulator Kiwifruit NZ and learnings from this programme will be used to inform future collaborative programmes.

Under the Kiwifruit Regulations, Zespri is the primary exporter of NZ-grown kiwifruit beyond Australia.

However, other exporters can apply to KNZ with proposals to export NZ-grown kiwifruit in collaboration with Zespri.

Peter says the Kiwifruit Industry Strategy Project consultation with growers heralded a change in direction for Zespri and collaborative marketing.

'This has opened the way for Zespri to partner with companies which can offer strong coverage in new or developing regions for Zespri and increase returns to our growers.”

Additional information

Zespri sold 670,000 trays of Zespri Kiwifruit in Thailand, Cambodia, Myanmar and Laos in the 2015 season

Zespri is the buyer of NZ kiwifruit for export to every country with the exceptions of Australia (which is governed by Closer Economic Relations) and collaborative marketing approvals for non-Zespri varieties

Zespri Kiwifruit is sold in 56 countries around the world