The head of the Green Growers Association says it is disappointing Zespri is the subject of legal action in China, but a relief the case has not impacted its exports.

Chairman Mike Smith made the comments in reference to the dual invoicing for the China market which resulted in Zespri's China agent being arrested on smuggling charges, fined millions and sentenced to 15 years' jail.

Packing Zespri kiwifruit. Photo: File.

'It is really difficult for us to understand how easy it is to run foul of the authorities over there, but it is reassuring the case hasn't affected recent sales and we don't have product held up at the border like the meat companies have recently.”

In light claims in a Sunday paper about the case and of corruption at Zespri, its chairman Peter McBride has written to growers saying 'it is important that growers have the facts of the situation”.

'It is true that Zespri had questions about the basis of the dual invoicing process,” he says in the letter.

'Concerns were raised by some employees and we did take actions at the time to check that the process was appropriate. In hindsight we should have checked more rigorously and we have clearly identified that our compliance systems need to be strengthened.

'Claims that Zespri knew what was happening are wrong.”

He says Zespri was led to believe by its former importer that an agreement with China Customs to allow for dual invoicing did exist, and that appropriate duties were being paid.

'All Zespri's actions at the time with regard to the import of kiwifruit into China were conducted in the context of believing such an agreement did exist,” the letter says.

Mike says it is disappointing Zespri has been caught up in the customs case but 'it is history and not affecting business at the moment so we have to take it on the chin”.

'New Zealand is the second easiest country in the world to do business with and we are really sheltered from business practices of other cultures and countries.

'People tend to think China is a country of huge opportunities and everything looks rosy, but it is a difficult place to do business and officials don't have the same links to head office as we think they might,” he says.

Another grower, who did not wish to be named, with decades of experience in the industry says he too is disappointed over the China case.

'I don't altogether blame them but do think a professional organisation like Zespri should have been more aware of what was happening in China. 'From what I can gather there is no doubt that it is necessary to be very careful when dealing with China, however, Zespri is not he first New Zealand company to have problems there.”

In 2008 Fonterra was caught in a scandal involving the criminal contamination of raw milk with melamine supplied to one of the biggest dairy companies in China, the Shijiazhuang Sanlu Group, 43 per cent owned by Fonterra.

Another grower who also didn't want to be named says he doubts the inquiry by New Zealand Kiwifruit Growers Inc will be impartial enough to reveal what really happened.

However, Peter McBride says sensationalist headlines about 'suitcases of cash” and implications of corruption at Zespri are unfounded.

'In due course Zespri will make a full accounting of the history of this case to growers and while there are things we could have done better, we are in a position to say our investigations to date have provided no evidence of corruption or personal gain by Zespri employees.

'Claims that Zespri benefited from this fraud are wrong.”