In September this year
You will be asked to vote on the continuation the of commodity levies to fund both
Horticulture New Zealand (HortNZ), and these vegetable product groups:
Vegetable Product Groups’
Levy Proposals 2012
The vegetable product groups who have
brought you this document would like
to share information with you about the
September levy referendum, and to seek
your feedback on the proposed levies
for 2013 – 2019 and how they should
be spent.
We have a long history of listening to growers and supporting
vegetable businesses through our action and influence.
Since HortNZ came into existence in 2005, the vegetable
product groups have continued to work for you alongside
HortNZ to improve the strength of your business and
the industry.
So we can continue to add value to your business through
complex and challenging times, we are asking you to support
each product group levy and also the HortNZ levy when you
vote in September.
The activities outlined in this document and in your individual
product group information sheets enclosed have been
developed by the vegetable product group board members
who you elected to be your industry representatives.
Vote for each relevant product group
levy as well as the HortNZ levy
Growers will be asked to vote in support of the HortNZ
levy and also each of the vegetable product groups they
are members of.
HortNZ and the product groups do different and
complimentary work to deliver support and services to
growers. They work together effectively and efficiently.
The referendum is not a choice about
voting for one or the other – a vote for
HortNZ and each of your product groups
is needed to maintain the support you
receive today.
Please check the enclosed brochure for more
details on the levy proposals, including the
proposed levy rates for the crops you grow:
•• potatoes
•• onions
•• fresh tomatoes
•• fresh vegetables
•• process vegetables
We would like your feedback on the proposals
– contact details are provided on the product-
specific brochures.
What the vegetable product
groups do for you...
As we ask you to invest in your future
by supporting each levy, we’d like
to highlight some of the things that
the vegetable product groups have
achieved for you.
For detailed information on the product group(s) you
belong to, see the leaflets included with this document.
Research & Development
The vegetable product droups jointly invest in the Vegetable
Research and Innovation Board, which commissions and
oversees research projects of benefit to vegetable growers
in the areas of:
•• crop management
•• climate change
•• new product development
•• new biocontrol agents
The board leverages significant outside funding, e.g. the
MAF Sustainable Farming Fund. Representatives from each
vegetable product group executive sit on the board.
Promotion
The vegetable product groups have a joint promotional
programme, raising the profile of vegetables through the
vegetables.co.nz website and resources (recipes, posters,
nutritional information and newsletters for consumers, the
food service industry, schools and retailers). The groups are
also financial members of 5+ A Day, and carry out their own
sector-specific promotion.
Market Access and Biosecurity
Vegetable product groups work together to liaise directly with
MAF and biosecurity officials on pest or disease incursions
that directly impact or affect vegetable growers e.g. with the
tomato/potato psyllid pest incursion in 2006.
We are also working with HortNZ to achieve an outcome on
the proposed Biosecurity Government Industry Agreements
(GIA) that is acceptable for the industry. Each product group
has begun work looking at their own engagement with GIA –
the risks and value for growers and how product groups can
best work under the proposed agreements.
Timeline
March to June 2012
Consultation with growers on the levy proposals
Grower Input and Information
The vegetable product groups understand growers’ concerns
and issues so that we can act on your behalf. This includes
representing your views on product specific issues to make
your voice heard with officials and influencers.
The only way we can do that is by communicating with you as
often as we can, in a variety of different ways. The NZGrower
magazine is a combined effort between the vegetable product
groups and HortNZ. We use the magazine to tell growers
what their product groups are doing, what HortNZ is doing
and what other growers are doing. The magazine is financially
assisted by product group funding, although the bulk of its
costs are covered by advertising.
The vegetable product groups also work hard to get
growers together at regional meetings and at the national
conference, run in conjunction with HortNZ.
Agrichemical Reassessments and
Registrations
The Environmental Protection Authority (EPA) has a
programme of reassessing chemicals that growers use.
It is essential that they understand how growers use these
chemicals so they are retained where appropriate. The
vegetable product groups’ elected representatives and
growers have given feedback on each chemical review
and these have been coordinated into a single submission
on behalf of each product group, giving more weight to
industries requests. During 2011 five submissions were
made in response to EPA’s call for submissions on the
critical uses of organophosphate & carbamate agricultural
chemicals under review.
Vegetable product groups are also supporting a three year
project to gain access to new chemicals that are available
overseas but not yet available in New Zealand. There are
three trials underway that will result in greater availability of
tools to vegetable growers.
Resource Management
Supporting the work of HortNZ by providing product-
specific research and representation when submitting
on regional an district plan changes. Your vegetable
product group representatives coordinate growers’ direct
involvement in plan hearings and consultation, protecting
growers “right to farm” in each region.
July 2012
Final levy proposals confirmed
 “Over the past six years HortNZ and the Vegetable Product
Groups have established a strong working relationship.
We do different but complimentary work and together,
we’ve achieved some great results for growers.
It is important that growers understand that HortNZ
cannot do the work that the product groups do and
product groups cannot do the work that HortNZ does.
I urge you to support your product group and HortNZ
to help us build a strong future for you – together.”

Andrew Fenton
President, HortNZ

Answering your questions

Why is a referendum being held?

rking together
The product groups are funded by a levy order established

Wo under the Commodities Levy Act 1990. The current levy

order expires in June 2013, so a grower referendum is being
held in September 2012 to establish grower support for a
new levy order.

How will votes be cast?

There will be separate voting papers for the HortNZ
levy and each of the Vegetable Product Group levies.
To be passed, each commodity levy proposal must be
supported in a referendum by a majority of voters,
measured both on a ‘one grower one vote’ basis and a
‘value of production’ weighted basis. Voters will be asked
to indicate their value of production (in the preceding
12 months) for the crop being voted on.

Your support of both the HortNZ and

for a product group levies will be required
ll growers to maintain the support and services
you currently receive.

With your support in the referendum, the product groups
and HortNZ will continue to work cooperatively to create a
more efficient, effective and productive sector for growers.
What happens if the levy proposals are
supported in the referendum?
If the vote is positive, the product groups will apply to
the Minister for Primary Industries for a new commodity
levy order to be put in place. The existing levy order
expires in June 2013.

Late August 2012 Late September 2012 Early October 2012

Voting papers to go out to all growers Voting closes Result announced
What if the referendum isn’t supported?
If the vote for any of the vegetable product groups is not
successful then the product group will have no mechanism
for funding beyond June 2013 and will have to consider
their position. One vote for HortNZ

If the HortNZ commodity levy is not Vote for each product group
supported, then HortNZ will cease to exist. That you belong to

What does HortNZ do? What is HortNZ’s proposal?

HortNZ is the industry’s proactive voice with central HortNZ is proposing a levy of 15c per $100 of sales on
and local government, dealing with issues such as: all fruit and vegetables.
•• the Resource Management Act You can find more information about this proposed levy
•• regional and district plans in the Horticulture New Zealand Commodity Level Proposal
– discussion document, which you should have received in
•• environmental standards
early March this year.
•• food safety
•• biosecurity
•• transport To share your thoughts on the HortNZ levy
•• labour or ask questions:
HortNZ works with government policy makers, Email levy2012@hortnz.co.nz, visit www.hortnz.co.nz
officials and politicians. or free phone HortNZ on 0508 467 869.

Tell us what you think

Please contact your vegetable product group Chairperson to ask any questions and to share your thoughts on the levy proposals
and how it should be spent to best support you. For contact details, see the insert sheet for each product group.
If you would like to hear from or see your product group representative about the levy proposals, please get in touch.
If you have any grower meetings or events scheduled where a product group representative could speak about levy, please get in touch.

“Tomatoes are New Zealand’s favourite

vegetable, and Tomatoes New Zealand
knows it has a responsibility to keep it “Growers are working 24/7 and we need to
that way. We are growers, working for know our people in Wellington are keeping
growers.” up. Vegetables New Zealand is run by
Wim Zwart Chairman, Tomatoes NZ growers, for growers. We get things done
smarter because we work together with
the other product groups and HortNZ.”
“When times get a bit tough, that’s the
Keith Vallabh Chairman, Vegetables NZ
time you look to each other for more
support, not less. Potatoes New Zealand
intends to keep working across the entire
sector to improve returns for growers,
and the entire value chain.” “Onions New Zealand is transforming
Stuart Wright Chairman, Potatoes NZ itself into a peak body organisation and
has obtained overwhelming grower
support in principle to move forward in
this direction. It’s an exciting time for our
“Vegetables might be one of the smaller industry which now has a true platform
product groups but we work hard to to deliver tangible value to growers.”
leverage off the work being done around
us by the other vegetable groups and Michael Ahern Chairman, Onions NZ
HortNZ. It is a great relationship and I
know growers benefit from it every day.”
David Hadfield Chairman,
Process Vegetables NZ