Commodity Levy

The activities of Vegetables NZ Inc are funded by a commodity levy which is paid by all fresh vegetable growers.

 

The Commodity Levies (Fresh Vegetables) Order 2019 came into effect on 1 April 2019 and is valid for six years. 

A copy of the Levy Order can be found here.

The maximum rate of the levy is 0.30% of the price received at the first point of sale, for fresh vegetables sold domestically; and 0.20% of the price received by the grower after deduction of all offshore costs (including international freight) for fresh vegetables exported.

The maximum rate of levy is exclusive of GST.

 


Fresh Vegetable Commodity Levy Vote Successful

VNZI are pleased to announce that the proposed new fresh vegetable commodity levy has been supported.  86.55% by number and 89.05% by value of those that voted in the recent referendum supported the proposal.

The Horticulture New Zealand and other vegetable product group referendums were also successful.

Many thanks if you were one of the 86.55% of fresh vegetable growers that cast your vote.

Next we will make an application to the Ministry for Primary Industries, who will take our request to the Minister for approval. The new levy order is expected to be in place around April 2019.

Under the new levy order, the fresh vegetable levy rate will remain the same at 0.30% for domestic sales and 0.20% for export sales.

Click here for the Horticulture New Zealand Media Release - 21 August 2018.


 

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 2012.  For those who voted, 88% supported continuation of levy funding (93% by value). 

The current levy is 0.30% or 30c per $100 sales collected at first point of sale. The funds collected by Vegetables NZ 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 0.20% (no promotion contribution).

Vegetables New Zealand Inc. is funded by a compulsory commodity levy on all fresh vegetable sales.

Vegetables New Zealand Inc. manages many activities on behalf of growers including:

  • Research and Development
  • Biosecurity and GIA negotiations
  • EPA Agricultural Reassessment
  • NZ GAP
  • VNZ Vegetable Promotions
  • Liaison with growers, other industry partners and government agencies
  • Supporting RMA activities and provision of research information

For more detailed information please click here