Kiwifruit regulator rejects Turners' bid

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Regulators have turned down an application by Turners & Growers to export kiwifruit through a collaborative agreement with Zespri.

Under industry regulations only Zespri or exporters with a collaborative contract can sell kiwifruit in overseas markets other than Australia.

Turners & Growers said Zespri had opposed its application, which had been turned down by industry regulator Kiwifruit NZ.

Turners & Growers managing director Jeff Wesley said it was a deeply flawed, anti-competitive system, which allowed unethical monopolistic behaviours that would not be tolerated in any other industry or international market.

"We have done all we can to work within the monopoly controlled system, but the decision by [Kiwifruit NZ] to turn down our second application to export our new varieties proves that the system, which has only ever been marginal at best, is now completely outdated and does not work," Wesley said. "The Government's claim that the collaborative marketing system allows others from New Zealand to export has been shown to be a charade."

Zespri chief executive Lain Jager said Turners & Growers had not shown the application was in the best interests of kiwifruit growers, as required by law.

"Should [Turners & Growers] be interested in coming back with a more serious proposal that it can show is in the interests of New Zealand kiwifruit growers, we are confident we will be able to advise the regulator that we support it."

Zespri worked with 13 companies, including Turners & Growers, which were exporting kiwifruit beyond Australia, Jager said.

"We have had senior executives working for nearly a year to try to make this work for T&G, but it appears T&G is more interested in trying to make a political point than make progress commercially."

The industry is waiting for the outcome of a case that closed last week in the High Court at Auckland to hear claims by Turners that Zespri was breaching the Commerce Act.