Update on Turners & Growers Kiwifruit Litigation

18 October 2011
News Release

Update on Turners & Growers Kiwifruit Litigation

Turners & Growers has announced that due to ‘severe pressure’ on the country’s kiwifruit industry, which is under threat from the bacterial disease PSA, it will not go ahead with its appeal against last year’s High Court decision that upheld the regulations giving Zespri its kiwifruit export monopoly.

The Appeal, which was due to be heard on November 1, was the first part of Turners & Growers action against the monopoly exporter that was launched in 2009.

Managing Director, Jeff Wesley said the PSA crisis within the New Zealand industry is putting kiwifruit growers and their families under ‘severe pressure’.

“PSA will change the industry in a way that no-one could have imagined. Like all kiwifruit growers, Turners & Growers is hoping that a solution will be found quickly and that needs to be the focus for everyone in the industry at this time.

“The Turners & Growers Board remains committed to gaining the right to export our own kiwifruit varieties, but believe challenging the legality of the Kiwifruit Regulations 1999 is not the right course given the threat currently facing the industry.”

Turners & Growers has confirmed that none of its orchards or its varieties on any commercial orchards have been impacted by PSA to date.

Turners & Growers will continue with its appeal on the second part of its action against Zespri to hear its claims under the Commerce Act. A date for that appeal is yet to be set.

In August, the High Court found that Zespri’s ‘loyalty’ contracts with growers are designed to preserve its monopoly over kiwifruit exports after deregulation. The Court also found that Zespri had taken advantage of its market power in adopting a policy of only commercialising new cultivars owned by Zespri. However, the High Court said that Turners & Growers could not show that Zespri had the purpose of substantially lessening competition in a market because it could not prove that the Government would deregulate the industry or when it would do so. –ENDS-

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, hothouse tomatoes and citrus.
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.

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 varieties including JAZZ™and
\ENVY™ apples and ENZARed, ENZAGold and Summerkiwi Kiwifruit.

Merged with Turners & Growers in 2003 to create global growing and distribution network.

In 2007, Turners & Growers and Delica Group formed specialist produce exporting company, Delica Limited. The company is the largest diversified produce exporter in Australasia offering international customers a complete range of high quality fresh produce.

© Scoop Media