Taskforce backs busting Zespri's grip

The 2025 Taskforce says Zespri's monopolistic position prevents the development of a more competitive market. Photo / Alan Gibson

Turners & Growers chairman Tony Gibbs has hailed a recommendation by the 2025 Taskforce to bust Zespri's export monopoly as a major fillip to his crusade to deregulate the kiwifruit industry.

Gibbs has also fired another shot at Trade Minister Tim Groser releasing a letter which he says undermines the Cabinet minister's statement that the Government will not wipe the export monopoly without a majority of grower support. The August 4 letter from Agriculture Minister David Carter says the Government would consider change if it was evident that a "substantial proportion" of kiwifruit growers was in clear support of changes. The letter does not mention a majority threshold.

"I've read a lot of Tim Groser speeches," said Gibbs. "They all talk about free trade and [reject protectionism]."

"But New Zealand's free trade position is a great hypocrisy and untenable."

The taskforce yesterday labelled Zespri as an anachronistic legacy of the old producer boards whose monopoly powers should be revoked. "Competitive markets need to be promoted not forestalled by Government fiat," its report said.

The taskforce also said it was not persuaded by the majority grower threshold: "It is not clear what public policy interest would justify a Zespri monopoly that prevented say, 35 per cent of growers who wished to do so from selling their fruit abroad through other companies."

But Zespri chairman John Loughlin slated the taskforce recommendation saying it would lead to a significant productivity drop and a reduction in New Zealand's export earnings. "In the last 10 years, the New Zealand kiwifruit industry has doubled in size and value, significantly contributing to the New Zealand economy and delivering wealth to New Zealand kiwifruit growers," said Loughlin.

"The New Zealand Government has clearly stated its position that it will support Zespri and the regulated industry structure for as long as they have the support of growers. Deregulation is therefore not on the agenda."