Appeal to open up pipfruit industry

By PHILIPPA STEVENSON agricultural editor

The domination of monopoly apple marketer Enza by corporate interests has brought calls for the immediate deregulation of the pipfruit industry.

Two separate appeals have been made for the Government to act quickly to remove Enza's almost sole right to export the $600 million apple crop now the company is controlled by investment firms Guinness Peat Group and FR Partners.

Leo Mangos, the chairman of the Labour Party's Primary Industries Council, and Rex Graham, the chairman of vocal Enza critics Independent Pipfruit Growers, promised vigorous campaigns to support their pleas for immediate deregulation.

"It is not appropriate for a corporation to have a monopoly. It should have to face the harsh realities of the marketplace like anyone else," said Mr Mangos, a former chairman of the Fruitgrowers Federation's kiwifruit sector.

"I will be advising my council to urge the Government to move quickly and warn the corporate raiders to back off, because they will not have protective legislation for long."

Mr Mangos' comments were "a shot across the bows of corporate raiders, and the Government."

He added that Agriculture Minister Jim Sutton could "not procrastinate on this, he does not have the luxury of time."

"The Government cannot stand idly by and watch an industry self- destruct," he said. If it had not received the message by the time of the Labour Party conference in November, "there will be fireworks."

Mr Graham said it was "diabolical" that two major corporates had control of Enza, which growers were locked in to supplying. It was untenable that growers had no choice.

He met Enza chairman Tony Gibbs on Friday to ask his help with a managed deregulation of the industry, but was told that the export monopoly was Enza's greatest asset.

Mr Graham said his group would enlist growers, Maori and political groups to wage an all-out campaign for the deregulation of Enza.

A spokeswoman for Mr Sutton said the minister was committed to a review of apple export regulations and would like to see broad support from the industry before embarking on any great changes.

Mr Sutton had ruled out making any changes before 2001-2002 to the regulations which allow only apple exports complementary to Enza.

The Government would look at any suggestions for change that had majority support, did not disadvantage minority shareholders and was in the public interest, the spokeswoman said.

Mr Mangos, who favours grower cooperative single-sellers, said it was too late for the apple industry to return to the model.

It should be deregulated, so groups of growers could compete in the marketplace.

"The corporates will pick the eyes out of the marketplace ... go into the highest-price markets and take the best of them," Mr Mangos said.

He said there was a strong chance board assets, such as post-harvest facilities, would be sold off and that Enza could be sold to overseas fruit companies such as Dole or Bonita.

"There could be a loss of the plant patent rights to the new varieties of apples developed by growers from retained profits and taxpayer funding through HortResearch," he said.

"I don't think a Labour Government should stand idly by and allow that to happen."

The majority of Enza's shareholding is in grower hands, but Mr Mangos doubted small growers would be able to exercise any control because of the corporate dominance of the board.

It was "the beginning of the slippery slope for the small grower," whose apple varieties may soon be unwanted by Enza, and whose shareholding was also insufficient to give an adequate return, he said.