Record turnout for Zespri referendum

Zespri chairman Peter McBride said growers had made a strong statement about the direction they want for their industry. Photo / Supplied

A change to rules around the ownership of Zespri shares and how the company is funded are on the cards after a grower referendum which saw a record voter turnout.

There was a clear mandate for change with interim results from the Kiwifruit Industry Strategy Project referendum showing two-thirds of growers, representing 80 per cent of production, had voted so far, said Zespri chairman Peter McBride.

"Over 90 per cent of growers have clearly stated their desire for change in three areas which affect Zespri - ownership of Zespri shares by growers who have left the industry, the mechanism by which the Zespri margin is calculated and changes to Zespri's board to formalise the three independent members. The change to share ownership, in particular, is a large piece of work and relies on government support to realise the industry's desire for change," he said.

"I think it's a real platform to go from now."

The changes would mean retired growers would not be able to retain their shares in Zespri, which is a grower-owned company.

"Our concern is that with an aging demographic and quite an attractive share, over time we're going to get a growing divergence."

It would take about a year to get the change signed off and retired shareholders would have seven years to sell their shares.

Another change supported by growers was to base Zespri's commission on a formula based on earnings before interest and tax of 2 per cent on sales after the cost of sales, the payment of onshore and offshore overheads, non-plant variety innovation costs, and excess taxation. Currently Zespri had to negotiate a margin with suppliers every three years.

"It was quite a negative, corrosive process," Mr McBride said.

New Zealand Kiwifruit Growers Inc president Neil Trebilco said growers were sending a clear message about how they wanted the industry structured.

"I am particularly pleased with the result for the question 'do you support the Single Point of Entry (SPE) as the kiwifruit industry's marketing structure?' With an unprecedented 98 per cent of growers voting in the affirmative, the support for the SPE is now the highest it has been since its creation in 1988. he said.

"This puts in perspective the small, vocal minority who have been constantly attacking the industry's single desk structure. This small group should now respect that growers have overwhelmingly declared their support for the SPE."

Earlier this month he also told the Bay of Plenty Times that, from an industry point of view, growers that had exited the industry and still held shares was not healthy.

"We need active growers to have shares in the industry. The key thing is putting rules in place so that current or active growers have ownership of Zespri rather than retired or growers that are no longer in the industry retaining shares."

About 10 per cent of shares were held by growers that had sold orchards and that number would only get larger, he said.

Te Awanui Huka Pak chairman Neil Te Kani was also encouraged by the results.

"With a record voter turnout and over 90 per cent support for all recommendations, the kiwifruit industry is in a strong position to deliver a strong economic growth platform for Maori," he said.

"Te Awanui Huka Pak are strong supporters of the Single Point of Entry structure as this is a crucial element to increase wealth for Maori in the industry."

As a result of the process, the New Zealand Kiwifruit Growers Incorporated would now enshrine a dedicated seat for Maori representation, he said.