Turners & Growers keeps on Zespri's case

Published: 11:27AM Thursday September 24, 2009 Source: ONE News

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Turners & Growers is taking another swipe at Zespri with the release of a presentation titled "How good a job is Zespri really doing?".

The fruit producer has been pushing for an end to Zespri's export monopoly on kiwifruit export, saying the single desk approach benefits only Zespri shareholders.

Zespri was formed in 1999 when the Kiwifruit Marketing Board split its regulatory and commercial operations. It is the grower-owned commercial arm and is charged with marketing and exporting kiwifruit overseas.

Zespri says the single-desk approach has pulled together what used to be a fragmented industry characterised by undercutting and price bargaining.

But, Turners & Growers says Zespri has provided no evidence to growers that they are better off with a monopoly.

"Growers bear any increases in selling costs because Zespri charges its margin on net sales before costs are deducted. Growers don't have the option of switching to an
exporter with lower costs, because Zespri is a monopoly."

Under its mandate, Zespri controls all kiwifruit exports to countries except for Australia and Turners & Growers says more competition could increase returns by hundreds of millions of dollars.

Turners & Growers in July sued Zespri in Auckland's High Court, arguing that the exporter was abusing its control of exports outside Australia.

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