Independent Kiwifruit Growers are waiting for answers from Zespri about the $500,000 fine the corporate received in Korea.
The IKGA says it obtained its own translation of the Korean Free Trade Commission's full public statement on its investigation into Zespri's 'unfair business practices”, because of a lack of information from Zespri to growers on the issue.
'At a time when growers are being bankrupted by PSA and the industry is literally on its knees, we are dismayed to learn that Zespri's 'unfair business practices” in the vitally important $109 million Korean market will cost growers about half a million dollars,” says grower Ted Meade.
The Korean ruling stops the world's largest kiwifruit exporter from 'depriving domestic consumers of their right to choose cheaper alternatives from Chile.”
It finds Zespri limited its competitors' ability to trade fairly in the Korean market in an attempt to maintain and even strengthen its existing market dominance.
The ruling also stops unfair business practices that obstructed the intended benefits of the free trade agreement between South Korea and Chile.
Zespri hasn't yet seen the full Korean decison, says a spokesman today.
"It hasn't been released to us yet so once we see that we will go through it and make decisions based on that.
"There's going to be no criminal charges laid. It's a competition authority issue. If we don't appeal that will be the end of it, if we do appeal then the appeal will be heard."
The Korean fine and another recent international issue involving the arrest of Zespri's agent in Shanghai for alleged evasion of import tariffs, raise a number of questions about the way Zespri operates as a state-sanctioned monopoly, says Ted.
'Compounding these issues for growers is the lack of transparency and accountability being demonstrated by Zespri in communicating with growers on these issues.
'We have written to Zespri's Board of Directors to urgently seek answers to these questions.”
His next step depends on the answers to the questionnaire he's sent to Zespri, says Ted.
'Basically they have got to get back to me if there are any criminal charges laid on them up there as a result of this,” says Ted.
'All I want is truth and transparency from Zespri. They have got worse and worse.
'This industry in on its knees and we have got a board which is very tight will not let out information. It's owned by growers, and it should be growers' business what's happening to our fruit. We have no control over it after it leaves the packhouse.
'We are paying their salaries. They are our employees, and basically they treat us like pretty bad dirt. I'm just pretty peeved off with the attitude. If somebody attacks them they single them out.
'If it wasn't for the vines in the ground, and the men and women behind the vines in the ground, there would be no industry, no Zespri.”
Zespri is taking kiwifruit overseas by the shipload and dumping it on markets without seeing what's going on in the local consumer market says Ted.
Every other primary exporter in New Zealand is looking at value added products, but not Zespri.
'You see people like nectar kiwifruit juices, kiwifruit NZ at Te Puna value adding and this could have been done years ago,” says Ted.
'They have got Aragorn there and it's been running at a loss, and Zespri still haven't got rid of it. People have tried to take that over and make something of it and they don't want to be in it.”
Zespri is happy to meet with Ted and talk through his concerns, says a spokesman.
"It's unfortunate he wrote to us and everyone else at the same time but we are happy to sit down and meet with him and go through his concerns again."


9 comments
The real issue
Posted on 03-12-2011 22:00 | By Justintime
Chilean kiwifruit has no tariffs in South Korea because of their free trade agreement. Zespri has to somehow compete against that. So who is the real anti-competitive culprit?
monopolies
Posted on 04-12-2011 11:55 | By lee hoggard
good on you Ted for asking these questions, there,s a great old saying, power corrupts and absolute power corrupts absoluetly, all monopolies fail in the end, theirs no one to compare zespri,s performance because zespri controls every thing in this industry. for a lot of growers the income from green is lower than the cost of growing it, some thing has got to change
Dont grow them then
Posted on 04-12-2011 13:47 | By mr mizprint
Look Lee and Ted, the answer for you is simple. Get out of growing Kiwifruit, no one is forcing you to grow them. The vast majority of growers endorse the Zespri system, so what was the point in you getting into the Kiwifruit industry knowing fullwell what the marketing structure would be, then moan about it? If your way is so much better then go grow apples so you can sell your produce in a now deregulated market. But are the apple growers so much better off now under this fragmented system? Go ask them, their answer wont bode well for your argument.
Misguided
Posted on 04-12-2011 17:32 | By kiwifruitgrower
Poor Mr Misprint, He has no understanding of the horticultural industry except that told to him by Zespri. Apples are oversupplied worldwide so if NZ growers had a monoploy it wouldn't help. Zespri can't sell kiwifruit as is evident by the fruit that is being processed or destroyed, their returns are dropping year on year. State sanctioned monopolies don't work. Zespri say they haven't had a copy of the decision, they are either liars or incompetent. They just are making excuses and don't want to face up to the issues, like "What is happening in China?" Another chapter again!
Central Planning
Posted on 04-12-2011 20:02 | By SOSKIWI
All central planning systems eventually fail. Zespri and North Korea are still hanging in there, both delivering similar outcomes. Who will fail first?
To mizprint
Posted on 04-12-2011 20:53 | By goldenjade
Mizinformed,Poor wally as the days go by growers are starting to wake up,that the input is more than their income!Zespri cope it sweet,No risk growers $$$$ all the way,even PROMOTION met by growers & still they come back year after year with excuses why the year has been tough.You would be better informed if you did some research before opening your mouth on this topic
Justoutoftime
Posted on 05-12-2011 05:51 | By goldenjade
You should be on TV so I can turn you OFF
Kiwifruit pearshaped
Posted on 05-12-2011 17:53 | By mr mizprint
Ahh the great Kiwifruit crash, I remember it well. Multiple marketng companies, all competing for fruit and markets. We were offered a $2 per tray advance and big promises in February, the fruit was dumped on the American market in July and it all went pearshaped from there. Instead of getting a cheque for our crop we got a bill. The same company that still claims it can do a better job than the incumbant. This is why growers lobbied Govt for a single desk system. But I digress, again if you dont like the system, vote with your feet.
To mizprint
Posted on 06-12-2011 21:54 | By goldenjade
History repeats itself! the industry is on its knees under SPE its not the SPE its the culture within
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