AUCKLAND, New Zealand--(BUSINESS WIRE)--Turners & Growers, New Zealand’s leading horticulture company is welcoming progress in Free Trade talks with the Indian Government but says as part of deal, the Indian Government will rightly be investigating barriers to trade and investment like New Zealand’s anti-competitive export monopoly on Kiwifruit.
And in an ironic twist the New Zealand Government has brought representatives from the world’s last remaining statutory monopoly, Zespri as part of their free trade delegation to India.
The New Zealand Government is facing questions over whether it has misled the World Trade Organisation about Zespri’s kiwifruit export monopoly.
The Indian Government may have noted that the OECD report recently identified Zespri’s anti-competitive export monopoly over all New Zealand kiwifruit as one of the barriers to trade and investment that the New Zealand Government must fix.
Zespri is a private New Zealand company with the world’s last remaining statutory monopoly giving it control over all Kiwifruit exports, except those to Australia, while other New Zealand companies like Turners & Growers are banned from exporting New Zealand grown kiwifruit. Any company breaking the ban faces a fine of $50,000.
Turners & Growers and its global ENZA brand are working to achieve free and unrestricted trade access for all New Zealand grown kiwifruit to world markets, including the world’s first commercialised red kiwifruit, ENZARed and their ENZAGold and Summerkiwi varieties.
Mr. Tony Gibbs from Turners & Growers says that genuine supporters of free trade will see the irony of the New Zealand Government taking Zespri, on the “free trade” trip to India.
“As the next rounds of the FTA discussions progress, Prime Minister Key and Trade Minister Tim Groser should be asked by their Indian colleagues what exactly Zespri, as a Government supported private monopoly, which is anti-competitive and anti-free trade can contribute to the Free Trade process.
“As a country we either believe in Free Trade or we don’t. Honesty and integrity has always been a hallmark of this country on the world stage and we must walk the talk. There is no justification for New Zealand’s backward-looking protectionist kiwifruit monopoly.
“Should the Government secure better access for New Zealand producers to the Indian markets there will be many businesses that will want to take advantage of the opportunity. But among all New Zealand businesses, it’s only kiwifruit growers that will be forced to export to India exclusively through a privately owned monopoly.
“The Prime Minister is right, the opportunities in the Indian markets for New Zealand producers are ‘incredible’. Turners & Growers is already working in India as a growth market for New Zealand horticultural products on a free and fair competitive basis. Turners & Growers, through its ENZA and Delica companies already exports New Zealand grown apples, strawberries and blueberries to India and is expecting to begin Cherry exports later this year.”
Background on Zespri’s Kiwifruit Monopoly:
- New Zealand kiwifruit growers are forced to sell through Zespri, and owners of non‐Zespri kiwifruit varieties are banned from selling their fruit anywhere but Australia and New Zealand.
- Zespri has monopoly powers conferred upon it by Government, but is a private company, not a cooperative.
- The report, OECD Economic Surveys: New Zealand 2011, states that with large New Zealand companies dependent on exports, regulations need to ‘emphasize the minimization of barriers to international trade and investment’ and finds that Zespri’s monopoly is one of the barriers that must go.
- The Government’s own 2025 Taskforce stated that Zespri’s monopoly power should be revoked.
- Turners & Growers is working to achieve free and unrestricted trade access for all New Zealand grown kiwifruit to world markets, including: ENZA’s own exclusive ENZAGold™, ENZARed™ and Summerkiwi™ varieties.
About Turners & Growers:
- Sells approximately of $1 billion of fresh produce globally each year
- 45 companies worldwide in the Turners & Growers Group including ENZA
- New Zealand’s leading distributor, marketer and exporter of premium fresh produce
- The largest corporate horticulture investor in New Zealand
- The largest grower of new apple varieties and hothouse tomatoes
- Own the largest network of fresh produce markets in New Zealand facilitating more than 200 million kilograms of fresh fruit and vegetables every day
- One of the largest operators of fruit cool stores and pack houses throughout New Zealand
- Operates a specialized fresh produce transport fleet in New Zealand that travels more than 4 million kilometers every year
- Coined the name ‘Kiwifruit’ in 1959 as it established exports of NZ-grown ‘Chinese Gooseberries’
- Remains at the forefront of the kiwifruit industry with several new varieties it has developed and tested for production and export from New Zealand including ENZAGold™, ENZARed™ and Summerkiwi™.
- Estimates its new kiwifruit varieties could earn NZ up to half a billion dollars per year in export earnings.
- Wants the right to be able to export, without restriction, its own kiwifruit varieties internationally.
About ENZA:
- New Zealand’s largest apple exporter
- Sells fruit in more than 60 countries
- Grows apples in 12 countries
- One of the world’s best-known produce brands
- Key supplier of fresh produce to 22 of the world’s top 25 retailers
- Owns the rights to new global fruit varieties including JAZZ™ and ENVY™ apples, ENZARed and ENZAGold Kiwifruit.
- Merged with Turners & Growers in 2003 to create global growing and distribution network.