Grower roadshows have been held around the country to find out if there is an appetite for any changes in the sector. Photo / Brett Phibbs
The seeds have been sown for a vegetable product group collaboration project.
Vegetables NZ, Process Vegetables NZ, Potatoes NZ, Onions NZ and TomatoesNZ are participating in an initiative to review the current structure of the industry.
Project manager James Kuperus told Coast & Country News that six roadshows have been held around the country for growers, “sounding out” if there is an appetite for any changes in the sector.
The roadshows revealed that more time and greater detail of the project were needed to inform growers, Kuperus said.
“Generally, it’s not necessarily a topic that members are fully across at present. But, by and large, they support a review.”
Kuperus said the different varieties of vegetables covered in the project and the sector groups’ respective needs varied.
The collaboration project is overseen by a governance group including board members from the five product groups participating.
The governance group, which prepared a business case on the project, will consider feedback from growers and the product group boards.
Kuperus said the project may be “parked” for a few months during the traditionally busy summer season in the vegetable industry and the Christmas/New Year break.
“Or possibly there could be some low-hanging fruit to get on with initially.”
Governance group chair Owen Symmans said the review was initiated by group members and the boards, who have queried the status quo and whether the sector was set up appropriately for the future.
He said the belief was that by pooling resources, reducing duplication and having a mightier voice together, a range of benefits could accrue to all vegetable growers in New Zealand.
“There is no one critical problem or issue, but rather a package of problems and opportunities that, when bundled together, present a compelling case to consider change and the future sustainability of the industry-good structure.
“Greater collaboration across the vegetable industry will result in greater efficiency, which will mean we can achieve more with each levy dollar for every vegetable grower.
“The current model has served us well for the past 20 or so years, but what we need to do now is challenge ourselves and work through the issues and obstacles to ensure a new collaborative model is able to support vegetable growers’ needs for the next 20-plus years.
“Boards have also been clear that they want to maintain what is currently working well, while strengthening expertise in emerging areas of priority for the sector.”
The draft business case (proposal) asked product group boards and members to consider a merged “pan-vegetable entity” with the working title VegeCo.
In the New Zealand food and fibre sector, there are 150-plus “industry-good” organisations, representing their members and advocating for their respective positions on a myriad of issues.
“This segmented structure has historically benefited the primary sector as it has resulted in clear focus on specific priorities,” Symmans said.
“Over time, priorities have changed with the inclusion of more multi-crop issues such as biosecurity, energy efficiency, environmental research and ‘the right to farm’.
“Given the noise and size of some of the other players in the primary sector, the vegetable sector as a subset is not always getting the desired cut through in Wellington on vegetable sector priorities, putting at risk grower profitability and ‘the right to farm’.”
The business case said the primary objective of the project is to best leverage the use of cumulative levy investment.
At present, growers pay levies to their respective product group and to Horticulture New Zealand (HortNZ).
The business case said this project is not looking at reducing levies, replacing HortNZ or trying to force any decisions on product groups.
“There remains strong support for the vegetable industry-good organisations; however, there are growing calls to consider what a future enduring model might look like to support industry growth and deal with emerging issues.”
The business case said some of the factors that have led to evaluating the industry-good structure were the continued increase in operational costs, changing priorities towards more multi-crop initiatives and increased Government “interference” in farming.
“What is clear from discussions with the various product group boards is, the consideration around an alternative structure is not being brought about due to staff underperformance, but rather because of a structure which is making it difficult for staff to deliver what is expected of them.”
Fifteen staff are employed across the five vegetable product groups, reporting to 35 directors.
Kuperus said the five current product group boards all endorsed the business case going to members for consideration.
“This does not mean they have made a decision on whether to support a single industry-good structure; rather, they are wanting members’ feedback before making that decision.”