Zespri denies anti-competitive behaviour

Turners & Growers has taken action against Zespri over fruit export restrictions. File photo / NZ Herald

Grower-owned kiwifruit marketer Zespri has denied being guilty of anti-competitive behaviour by putting export agreements in place.

The company was defending itself in the High Court in Auckland against claims by fierce rival Turners and Growers.

Turners and Growers brought the action because it wants to be able to export its kiwifruit without restriction.

Zespri controls exports to all countries other than Australia.

Turners has also alleged Zespri tried to control kiwifruit exports to Australia in 2008-2009, and tried to take control of new kiwifruit cultivars.

Opening Zespri's case today, David Goddard QC told Justice Douglas White that Zespri was the only authorised exporter of New Zealand-grown kiwifruit to countries other than Australia, under the Kiwifruit Industry Restructuring Act 1999 and the Kiwifruit Export Regulations 1999.

Zespri had not breached the Commerce Act 1986, Mr Goddard said.

"Zespri's actions have been consistent with that act, and have been designed to give effect to the regulatory regime applicable to kiwifruit exports from New Zealand, and to put in place and implement an efficient strategy for managing its export business that maximises returns for Zespri and for the growers who supply kiwifruit to Zespri."

Mr Goddard said that Zespri had not taken advantage of its current market power under the regulatory regime by putting export agreements in place.

"A firm that was pursuing the same market strategy as Zespri in overseas markets would be able to enter into similar agreements, and would be likely to do so.

"There is evidence of long term contracting and vertical integration by other exporters of kiwifruit, including Turners and Growers itself."

There had been no "taking advantage" of market power, Mr Goddard added.

The hearing will continue next week

- NZPA