What’s happening at KNZ
Zespri Producer Vote
As part of KNZ’s function of monitoring and enforcing the Kiwifruit Export Regulations 1999, KNZ was actively involved in the recent Producer Vote conducted by Zespri, to ensure it complied with the Regulations, specifically Regulation 11.
This regulation allows Zespri to carry out activities that are not core business, if it has informed all producers of the proposed activities (in this case 12 month supply and PVR ownership), and asked producers to agree by vote to Zespri carrying out the proposed activities.
For the vote to pass, 75% of the producers voting must agree and, the production volume controlled by those producers who agreed, must represent at least 75% of the kiwifruit supplied to Zespri over the last two seasons by all producers who took part in the vote.
Zespri must also minimise the risks arising from these activities for the producers who have not agreed or not voted on the activities.
Therefore, KNZ’s role involved monitoring the following areas;
- Accuracy of producer identity information and volumes
- Timetable for voting process
- Ensure voting process and results run by an independent company (Electionz)
- Ensure eligible voters and volumes independently verified by auditors (KPMG)
- Tracking information supplied to producers both in written form and verbally at producer road-shows
- Confirm results were accurate and independently verified
As part of this process, I met with Zespri staff, Electionz who managed the vote, and KPMG who audited all data and the results of the vote.
KNZ collected all data sent to producers, and I also attended three roadshows in Tauranga, Te Puke and Katikati to hear the audio-visual information presented and also hear the answers given to producers’ questions.
Putting all this information together will give a clear definition of the activities that Zespri can carry out from this vote and set clear boundaries that KNZ can monitor to ensure compliance with the mandate given to Zespri by producers.
KNZ will also be monitoring Zespri’s risk management and mitigation measures relating to these activities on an ongoing basis.
In conclusion, KNZ found that the voting procedure was consistent with the Regulations and the results obtained did meet the conditions in Regulation 11. Zespri can continue to be involved in 12 month supply and PVR ownership activities as specified in the two Resolutions voted on by producers.
Attached are the final audited results of the vote and the auditor’s report.
KNZ Board – 2018 Election Result
The Kiwifruit New Zealand Board consists of six directors, of which three are elected by producers for a three year term. This means every year one producer elected director is due for re-election.
Hendrik Pieters’ term expires on 30th September 2018, and as he has held the position for more than three terms of three years he is not eligible for re-election.
Nominations for a new director were called for and the nominations process closed on 13th August. Only one nomination was recieved, and that was for Colin Olesen.
Accordinaly, no election was required this year and Colin has been confirmed as a director of KNZ. Colin’s term will commence from 1st October 2018.
I welcome Colin to the KNZ Board and look forward to working with him.
Kristy McDonald QC
Collaborative Marketing Applications for the 2019 Season
The Kiwifruit Export Regulations 1999 establish Zespri as the sole authorised exporter of New Zealand grown kiwifruit to all markets except Australia. However, the Regulations do provide for applications to KNZ for the export of kiwifruit, by others, under collaborative marketing (CM) arrangements.
Every year KNZ reviews the CM application process to ensure it is working well for all participants and also to minimise the barriers to new applicants, whilst still meeting the purpose and intent of the Regulations.
The CM Guidelines for applicants have been reviewed and updated and can be found here:
These guidelines outline the application process, the timing, and the fees for new and existing applicants.
Anyone interested in collaborative marketing should read the “Collaborative Marketing” section of this website and the guidelines.
If you have any questions you are welcome to email or call the KNZ office to discuss the process.
2017-18 Annual Report
The 2017-18 Annual Report is now ready to view. Follow this link to see what KNZ has been up to in the past financial year.
A printed copy is available upon request to email@example.com
Collaborative Marketing Results 2017-18
Regulation 15 of the Kiwifruit Export Regulations 1999 requires KNZ, to disclose publicly within three months of the end of season;
- the identity of each CM approval holder
- the volume marketed by each approval holder
- the financial information to enable an assessment to be made, if the net returns for each arrangement were greater than if the arrangement had not been approved.
This information is contained in a report located here: 2017-18 Collaborative Marketing Results (Reg. 15)
2017-18 Financial Statements and Auditor Report
Regulation 40 of the Kiwifruit Export Regulations 1999, requires KNZ to prepare financial statements that comply with generally accepted accounting practice, have them audited by a qualified auditor, signed by the Board and disclose publicly, within three months after the end of the financial year.
KNZ has complied with this regulation and the statements can be found here: 2017/18 Financial Statements and Auditors Report
There are two areas of variance compared to previous years;
- the Regulations were amended from 1 August 2017, and the KNZ Board was increased from five to six members.
- the expenses relating to collaborative marketing activities were reviewed and amended to reflect the time and costs associated with collaborative marketing for the 2017-18 year.
Statement of Intent
The Kiwifruit New Zealand Board (KNZ) performs a unique role in the New Zealand kiwifruit industry. It is the independent statutory body tasked with ensuring there is a balance to the benefits of the Zespri single desk structure and the risks it brings by implementing mitigation measures.
In 2017 a substantial review of the regulations was undertaken by the Ministry of Primary Industries (MPI) to take into account the rapid growth and development of the industry, and included careful consideration of the Kiwifruit Industry Strategic Plan (KISP) process and report. From this review the Regulations were amended in a number of areas, including the requirement for KNZ to provide a Statement of Intent every 3 years.
This first Statement of Intent marks an important shift to position KNZ to carry out its functions in a more transparent, accountable, and measured manner. It is an excellent opportunity to share our strategic goals and initiatives for the next 3 years, and we hope this document will provide all interested parties a better understanding of KNZ’s role in the industry.
To view the Statement of Intent, please click here.