11 July 2017
Kiwifruit Export Regulations amended to underpin industry’s future
Zespri welcomes the announcement by the New Zealand Government today that it has approved the amendment of the Kiwifruit
Export Regulations.
Zespri Chairman Peter McBride says the updated regulations will enable Zespri to recommend changes to its constitution
to align shareholding of the company more closely with production.
“Our industry asked the government to update the regulations to allow us to develop a sustainable and long-term plan to
maximise the wealth of New Zealand kiwifruit growers. That means taking action to develop the broadest-possible
alignment between total production and shareholding, to strengthen grower ownership of the industry,” says Mr McBride.
Over time, the New Zealand kiwifruit industry has seen a growing misalignment between growers who supply kiwifruit to
Zespri and people who own shares in Zespri. One reason is that orchards have been bought and sold but those leaving the
industry have not always sold their shares to existing growers. A result is that a number of growers do not own shares.
Zespri now intends to hold a Special Meeting as soon as practically possible following consultation with shareholders,
to ask shareholders to support changes to its constitution designed to improve shareholder alignment, including
increasing the number of growers that own shares.
Zespri plans to support this process by carrying out a targeted share buyback and issue programme next year. These
measures require shareholder approval and would come into effect over a number of years. Zespri will communicate further
details about the planned recommendations at its annual meeting on 24 August.
In addition, the Government has updated the definition of Zespri’s core business in the regulations. The change
acknowledges that Zespri’s model has evolved, and recognises that research and development, market development and
marketing are essential in leading the world in delivering quality kiwifruit and providing strong sustainable returns to
New Zealand growers.
The regulatory change is a significant milestone in a comprehensive industry review process spanning three years,
including a grower referendum in 2015 that had the highest turnout in a horticultural referendum in recent history.
“I would like to acknowledge Minister Nathan Guy again for his strong support of the industry and the Ministry for
Primary Industries for their hard work throughout the process,” says Mr McBride.
ENDS