Growers let profit do the talking

Zespri's John Loughlin says kiwifruit people are passionate about their business. Photo / Alan Gibson

Put your cheque book away Mr Gibbs - trying to persuade kiwifruit growers to agree to deregulation of their $1.4 billion industry is throwing away good money on lawyers and consultants. That was the message to Turners & Growers chairman Tony Gibbs from Zespri's annual meeting yesterday - and it was all the more powerful for being understated.

Around 450 of Zespri's 2700 national growers attended the Tauranga meeting, but only a handful even bothered to acknowledge Gibbs' campaign to overturn their company's statutory right to control kiwifruit exporting to all countries except Australia.

Far from stirring up the sort of no-holds-barred growers versus corporate stoush he starred in when he took on the regulated apple export industry around 2000, Gibbs seems to have failed to rattle kiwifruit growers with his deregulation plea to the Government and this week's legal proceedings against Zespri.

The legal action was "a stunt", Zespri said.

Export sales of their green fruit might be under serious price pressure from overseas grower rivals and global fruit wars intensified by recession, but Gibbs' moves could not knock grower satisfaction with Zespri's posting of a 21 per cent increase in net profit this year to $23.9 million, and signs that gold fruit is on the way to overtaking pipfruit exports.

A record 100 million trays were produced and fruit and service payments to the industry totalled $800 million.

Zespri's overall sales revenue was up 25 per cent at $1.45 billion and a combination of improving pricing and optimised size contributed $50 million to New Zealand sales revenue, the meeting heard.

The challenge facing Gibbs, Sir Ron Brierley's lieutenant in New Zealand, was evident in the number of people contesting director seats. As Zespri chairman John Loughlin has noted, kiwifruit people are "passionate" about their business.

Five growers challenged for one director spot on the board, and three candidates vied for one independent director vacancy.

Former Zespri chief executive Tony Marks, who left in 2002 to start the Pacific Blue airline for Richard Branson, defeated New Zealand Trade and Enterprise chairman and former Port of Tauranga chief executive Jon Mayson, and businessman Warren Banks for the independent seat. Grower Ray Sharp was the successful grower candidate. Tony de Farias was re-elected to the board unopposed.

Gibbs was not at the meeting, nor was Turners & Growers managing director Jeff Wesley.

Facing the music alone for Turners & Growers was company secretary Paul Knight.

Finding no music to face, he elected to "sit and listen".