Harvested kiwifruit should be held by an independent trust, not Zespri, to safeguard growers' livelihood from any liability should legal action be taken against the marketer.

That's the view of Te Puke grower Rob Thobe, who has written an open letter to Prime Minister John Key calling for a review of the industry regulations and for Zespri to be placed under statutory management.

Photo: file.

Rob says he fears for growers' incomes because all fruit goes into Zespri's inventory once it is harvested and could be considered part of the company's assets should it be sued by a third party or suffer any other major loss.

'Growers' ownership of their fruit must be protected until the fruit is fully paid for. Protecting growers' incomes and fruit is simply prudent and common sense,” says Rob, who is an elected member of New Zealand Kiwifruit Growers Inc.

In response to Rob's calls, NZKGI says: 'Zespri's policy is to pay out grower funds as quickly as is practical. Zespri has equity of $78 million, which insulates grower funds from risk”.

Te Puke growers Andre Hickson and John Cook don't support Rob's calls for major change.

'If Zespri was put under statutory management there would be significant collateral damage for the industry, including uncertainly in the markets and the loss of valuable human capital and knowledge,” says John.

'Making such a call is just nonsense. There is clearly a faction within the industry, a handful of growers with their own axe to grind, who want the deregulation of the single desk marketing system and are not acting in collegiate manner for the good of the entire industry.”

Andre believes for anyone unhappy with the current industry structure, the time to write to the Prime Minister or take further action will be after the release of the Kiwifruit Industry Strategy Group's direction and recommendations documents, and at grower meetings later this year.

The current single point of entry marketing system has served the industry well and must be retained, says Andre, who also believes: 'it is healthy and sensible to develop a strategy for the future and that's happening now”.

Rob says he has the support of many growers, concerned about Zespri's conviction for fraud in China last year; that it is currently under investigation by the Serious Fraud Office in New Zealand; and recent customs issues with its importers in Taiwan.

'Any one of these instances should have been cause for a Ministerial inquiry, similar to that into Fonterra over the botulism scare, but the Minister for Primary Industries is refusing to act.”

In his letter to John Key, Rob has called for Zespri to be put under statutory management, which he says is only reasonable given the company's recent criminal convictions and investigations.

'NZKGI, in response to my open letter has said that statutory managers may only be appointed if it is deemed that ‘the corporation or associated person is operating fraudulently or recklessly; or it is desirable to maintain interest of creditors, beneficiaries or the public' – and I would argue that Zespri's recent conviction and SFO investigation more than meets those requirements,” says Rob.

Rob also wants a review of the Kiwifruit Export Regulations.

'To allow the regulations to continue without any sort of review for 14 years is, in my view, gross recklessness on the part of the Crown. A full inquiry is now vital to protect the interests of all kiwifruit growers – especially growers of the Hayward Green kiwifruit, which is the variety that founded the industry and remains its backbone – and the reputation of NZ Inc.”

While acknowledging the Kiwifruit Industry Strategy Project is currently underway and growers are being consulted, Rob says growers cannot change the regulations which govern their industry. 'The government made the rules and only the government can change them.

'Urgent action is needed now to protect grower incomes for the coming harvest and indeed the economy of the Bay of Plenty, which depends on the kiwifruit industry,” says Rob.

John says it is healthy to review and question what's happening within the industry and the forum to do that is through NZKGI and the current Kiwifruit Industry Strategy Project, where growers have the opportunity to participate.

His family has been in the industry for more than 30 years and in the 25 years he's personally been both a green and a gold kiwifruit grower, John says he's experienced the industry's 'turbulent teenage years”and isn't about to see the hard-won stability compromised.

John cut out 4.5 hectares of vines from two orchards in the area, close to where the first Spa-V infection was identified. 'It feels the collegial nature of our industry has played a huge part in the Spa recovery.”

Andre says, after three very tough years now is the time to enjoy the optimism returning to the kiwifruit industry, not pursue a negative route.

'Some growers have had a hard time in the last two to three years because of Psa, but they are seeing renewed optimism and should be able to enjoy that. Instead of being negative, let's be positive,” says the long-time green grower of Pongakawa.

The Hickson's family orchard has been growing kiwifruit since 1980 and while Hayward green remains the predominant crop, gold varieties and G14 are also grown. Andre is a member of the Gold Development Group, but not a forum member of NZKGI.

'Zespri needs to keep the Hayward variety financially viable. However, as growers for the future, we need to be looking at better varieties from a market and a Psa perspective”.