WELLINGTON - The Apple and Pear Board has found that EnzaFruit did not breach regulations in February when it decided not to return $25 million in capital to growers.
EnzaFruit, the board's trading company, had said that rather than distribute the proceeds from the sale of its subsidiary Frucor Beverages to
growers, it would use the money to offset costs from foreign exchange losses and its investment in Omniport, a spiral container loader.
EnzaFruit had said this would allow increased returns to growers of about $1.20 for every carton of pipfruit supplied to it.
Complaints about EnzaFruit's decision were laid with the independent board, which oversees the new industry regulations.
EnzaFruit chairman John McCliskie said the company had always been confident that it had acted within the regulations.
"At the time, the decision was a hard call, but it was based on commercial reality and the long-term best interests of our business."
- NZPA
