Independent Kiwifruit Growers Association is calling for an independent inquiry into the kiwifruit industry, claiming Zespri and its watchdog organisations are too closely linked.

IKGA has no confidence in the ability of Kiwifruit New Zealand or New Zealand Kiwifruit Growers Inc. to act as effective watchdogs on the activities of Zespri, it says.

Independent Kiwifruit Growers Association is calling for an inquiry into the kiwifruit industry structure.

In a statement from IKGA grower liaison officer Ross Hart, the group says there are questions that are not being asked about the activities of Zespri, the way it operates and how grower funds are dealt with by Zespri.

'IKGA is concerned that Zespri has become another corporate and lacks proper accountability to growers.”

The statement comes ahead of Zespri's AGM in Tauranga on Wednesday and following the conviction in China of Zespri's China-based subsidiary and one of the subsidiary's employees, relating to the under-declaration of customs duties on imports into Shanghai of New Zealand kiwifruit between 2008 and 2010.

'We do not agree that it is possible for growers to have a clean debate under the current structure of the kiwifruit industry which we refer to as the 'KKK” being the great Kiwifruit Klobbering Klub, which monopolises information and attempts to shut down dissent and questioning,” says Ross.

IKGA was established in May 2010 by a group of concerned kiwifruit growers and aims to provide an independent voice for kiwifruit growers.

'For that reason, we support calls for an independent enquiry into the whole industry structure including NZKGI (which growers have to pay compulsory levies to), KNZ (which growers fund via Zespri), Kiwifruit Vine Health (which we consider to be a de-facto arm of Zespri) and of course Zespri itself which is in a privileged position because all kiwifruit growers are compelled to supply Zespri whether shareholders or not.”

Since 1999 there has been no review of the kiwifruit industry regulations despite the concerns of the Producer Board Reform team, the group says.

The board of KNZ consists of a majority of producer-elected representatives who themselves either personally or through related parties are both Zespri growers and shareholders, particularly growers of Zespri's own kiwifruit varieties.

'Given this fact it is difficult to understand how KNZ can either promote downward pressure on Zespri's costs or provide appropriate protection for growers. Put simply, the majority of the board of KNZ is conflicted and subject to allegations of bias by reason of their interests and associations with Zespri as well as their public comments.

'There is nothing in the regulations that limits KNZ from setting out requirements for eligibility for election as directors, which would disqualify candidates for election who have any direct or indirect interests in Zespri. This does not happen,” says Ross.

KVH is, in the view of IKGA, a de-facto Zespri subsidiary. Ross says KVH's research and science programme appears to be largely contracted to Zespri.

'They have a scientific oversight committee that is neither a committee nor does it provide oversight.

'We see no evidence of any research effort into combing the world for commercially viable Psa resistant or tolerant kiwifruit varieties. Their 'science” programme appears to be more concerned with protecting Zespri's proprietary kiwifruit varieties and building themselves an empire funded by compulsory levies on growers.”

NZKGI also shares offices and facilities with Zespri and Ross does not consider the organisation to perform an effective watchdog role on behalf of growers.

'Their enquiry into the China situation is, in our view, a case in point. We confidently predict that it will be a whitewash.”

IKGA says it encourages Zespri employees who are sitting on information about the way Zespri, KNZ and KGI do business to contact it in confidence.

'We also support calls made for an enquiry into the industry by Labour Party Agriculture Spokesmen Damien O'Connor and the ACT Party.”