Product Group > Commodity Levy

The Fresh Vegetable Product Group is funded by a compulsory commodity levy on all fresh vegetable sales. The levy is applied under the Commodity Levies Act (1990).

Under this Act, an application must be made to the Minister of Agriculture to collect compulsory levies from growers. At least 50% of growers who vote (both in number and value of their production) must support the application. The last referendum was held in 2006 with 82% (92% by value) of fresh vegetable growers, supporting the continuation of levy funding.

The current levy is 0.45% or $45 per $10,000 sales collected at first point of sale. The funds collected by the Fresh Vegetable Product Group are used for research and development (0.1%), promotion activities (0.1%) and product group activities (0.1%). A contribution is also paid to Horticulture New Zealand (0.15%) for the purposes of industry wide representation and advocacy. The levy on export crops is set at 0.35% (no promotion contribution).

More information on levy funding can be found in the following publications:

Fresh Vegetable Levy (Total $45 per $10,000 sales)

Research & Development ($10)

Promotion ($10)

Product Group ($10)

Horticulture NZ ($15)