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
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