Commodity Levy

ANNOUNCEMENT - 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.


Fresh Vegetables Commodity Levy Referendum - VOTING HAS NOW CLOSED AND RESULTS WILL BE AVAILABLE SOON.

Key dates:

2 July 2018 12:00am – voting opens
13 August 2018 12:00pm – voting closes

Who can vote?  All commercial fresh vegetable growers are entitled to vote.  Commercial fresh vegetable growers are those persons or businesses that are engaged in the commercial production of growing fresh vegetables in the 12 months preceding 30 June 2018.

How do I vote?  You can either vote online on www.electionz.com/hortCLA logging in using the PIN and password that will be provided in your voting paper. Or you can return the completed voting paper by post in the reply prepaid envelope.

How much will the levy be?  The maximum rate of levy will be: Domestic Sales 0.30% (30 cents per $100 of sales value; and Export sales: 0.20% (20 cents per $100 of sales value).  The rates are GST exclusive.

(Sales value means - for Domestic Sales: the price received at the first point of sale by the grower.  For Export sales: the price received at the first point of sale by the grower after all offshore costs (including international freight) are deducted.  (Exporter means a person whose business is or includes the export of fresh vegetables).

What will the levy be spent on?  VNZI are proposing the levies will be used for the following purposes relating to fresh vegetables and fresh vegetable growers:

  • Research and development
  • Biosecurity activities
  • Export and domestic market development
  • Fresh vegetable promotional activity
  • Development of quality assurance
  • Education and training
  • Grower information, communication and support
  • Day to day management and administration of Vegetables New Zealand Inc.
  • Grower representation

The levy will not be spent on any trading or commercial activity.

For more information on the Vegetables NZ Inc. Commodity Levy Proposal please call John Seymour on 04 494 9973

Download a brochure on the Vegetables NZ Inc Commodity Levy Proposal. 


 

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