Zespri growers' chance to vent on export challenge

John Loughlin

It should be standing room only at kiwifruit exporter Zespri's annual meeting this month with big competition for two director vacancies and growers keen to vent on Turners & Growers challenge to their export monopoly.

Zespri chairman John Loughlin said Turners & Growers had not asked for a slot on the agenda at the July 22 meeting in Tauranga but he could not responsibly deny "anybody the opportunity to say concisely what was on their mind".

Listed Turners & Growers, New Zealand's biggest fresh produce business led by Guinness Peat Group's Tony Gibbs, has asked the Government to remove Zespri's export monopoly, which covers all countries except Australia. Zespri's export earnings last financial year were nearly $800 million. The company is owned by its 2700 New Zealand growers.

Grower representative group, NZ Kiwifruit Growers, has rejected Turners & Grower's call, citing a 2007 survey that showed 84 per cent of growers were happy with the structure.

Loughlin said the challenge was a grower issue. "The single-desk was something granted to growers, it's really their choice. Basically Zespri is trying not be political on this. It's really focusing on its job of selling the fruit well this season, but inevitably the discussion is going to play out."

There are three contestants for one independent director vacancy on the Zespri board, while five growers will challenge for one grower/director spot.

The independent candidates are former Zespri chief executive Tony Marks, who left in 2002 to start the Pacific Blue airline for Richard Branson, NZ Trade and Enterprise chairman Jon Mayson and Bay of Plenty businessman Warren Banks.

Loughlin attributed the strong contests to "passion for the industry and its opportunities".

"This is a relatively young industry... characterised by a lot of passion and a real sense of community and a shared vision for the industry. "

Loughlin said he would "prefer not to have a scrap" with Gibbs, who overturned the apple industry's export monopoly, after taking over its marketing arm, Enza. "But if you have to do the right thing, you do the right thing.

"The big difference is that the apple industry destroyed the fortunes of its growers. A lot of growers didn't want to sell out to Enza but couldn't afford to [do] anything else."