KGI holds fears on Kiwifruit Claim

It is advising growers not to join The Kiwifruit Claim until it has completed its due diligence on the agreement growers are being asked to sign when they join the claim.

"We are currently assessing all information and the due diligence will be completed next week and advised to growers. A key concern for NZKGI is ensuring growers are not exposed to large financial costs in the event the claim is unsuccessful," says NZKGI vice-president Doug Brown in an advisory to growers.

NZKGI strongly values the industry relationship with Government and believes that working together is the best option to ensure growers continue to benefit from premium returns, the statement says.

"We believe this claim may damage the kiwifruit industry's relationship with the New Zealand Government," said Mr Brown.

By working and partnering with Government, the kiwifruit industry:
• has the Single Point of Entry (SPE), our marketing system;
• has had tariff reductions negotiated, for example the trade agreements with China and Taiwan;
• receives Research and Development funding from the Government;
• retains market access to our off-shore markets; and
• has had improvements made to the country's biosecurity system to better protect our industry.

NZKGI has asked for a copy of the legal advice on which the claim is based to complete its assessment for growers.

"To date, this has not been provided. However, based on the information we currently have, we believe the claim is not likely to succeed and will take many years," says Brown.

NZKGI has passed a resolution at its Grower Forum to not join the The Kiwifruit Claim.