Zespri monopoly case appealed

Turners & Growers is appealing last month's High Court ruling in its case against privately owned kiwifruit exporter Zespri.

Turners & Growers took Zespri to court accusing it of breaching the Commerce Act as it is the only exporter permitted by the government to export kiwifruit beyond Australia.


In a judgment issued in August, the High Court found that Zespri's ‘loyalty' contracts with growers are designed to preserve its monopoly over kiwifruit exports after deregulation.

The court also found that Zespri took advantage of its market power in adopting a policy of only commercialising new cultivars owned by Zespri.

The court also ruled that Turners & Growers could not show Zespri had the purpose of substantially lessening competition in a market because it could not prove that the government would deregulate the industry or when it would do so.

The judgment followed a five-week hearing in May.

Turners & Growers managing director Jeff Wesley says the decision to appeal owing to this third point follows legal advice.

'The advice was that errors were made in the judgment and that it should be taken to the Court of Appeal.”

Turners & Growers Chairman Rob Campbell says the decision reflects the continuing resolve of his business 'to get the right to export its own kiwifruit varieties from New Zealand and to service the growers who wish us to act for them as we do for growers of other produce”.

Notice of appeal has been lodged at the High Court in Wellington.

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