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ENZA Fails Growers Again

Wednesday 31st May 2000
Owen Jennings
Media Release -- Other

The news that apple growers will be getting a bare $10.00 a carton this year shows that ENZA has failed yet again, according to ACT Rural Spokesman, Owen Jennings.

Owen Jennings said ENZA is hiding its poor performance behind a one-off capital distribution from the sale of Frucor Beverages of $1.20 and the change of acquisition point from coolstore to FAS, contributing some $4.75 toward the announced price of $16.57.

“The tired old diet of excuses blaming the market place and too much fruit will not rub. The simple truth is that ENZA with a country mile advantage over its competing, consent holding, fellow exporters has turned in an abysmal performance. Other exporters are paying much better prices and they are novices in the business,” he said.

“ENZA has let growers down. They promised better and failed. Costs on-shore are still too high and attempts to improve profits in the market place have failed. Arrogance and high handed tactics with buyers is catching up on the organisation. Some supermarket chains now flatly refuse to deal with ENZA. Delays in getting fruit to the market have cost growers this season. When top prices were being paid ENZA was still working through logistical problems here in New Zealand,” he said.

Owen Jennings said that playing politics with their own growers and with the rest of the exporters diverted attention away from seeking a commercial and profitable outcome. “Growers need better from the industry’s dominant player. Leadership is sorely needed,” he said.

“The half way house of partial deregulation is clearly not working for growers. For their sake the Government must bite the bullet and fully deregulate the industry,” said Owen Jennings.

For more information visit ACT online at http://www.act.org.nz or contact the ACT Parliamentary Office at act@parliament.govt.nz.

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