Levy Review, Governance Renewal and Looking Ahead - Summerfruit NZ

Levy Review, Governance Renewal and Looking Ahead

As we move through winter and start looking ahead to spring, there is certainly no shortage of activity across the summerfruit industry. Between preparations for another growing season, upcoming Board nominations and an important Annual General Meeting (AGM) resolution, the next few months will provide growers with several opportunities to help shape the future direction of Summerfruit New Zealand.

Proposed Levy Resolution for the AGM

During consultation as part of the recent levy renewal process, several growers raised questions about the current differentiated levy structure whereby cherries pay a commodity levy of 0.75%, while apricots, peaches, nectarines and plums pay 1.5%.

In response, the Board asked management to undertake a detailed review of the current settings. Historically, the lower levy rate applying to cherries reflected the significantly higher revenue per hectare typically generated by cherry orchards. The review considered whether the current levy structure still reflected the rationale that originally sat behind the differentiated rates.

Following consideration of the analysis, the Board agreed to put a resolution forward to this year's AGM recommending a reduction in the levy rate for apricots, peaches, nectarines and plums from 1.5% to 1.25%, while retaining the cherry levy at 0.75%.

The Board also carefully considered the financial implications of the proposal. Summerfruit New Zealand has generated positive operating results in recent years and has generally outperformed budget expectations. The Board was therefore comfortable that a modest reduction in levy revenue could be accommodated without compromising the organisation's ability to continue delivering services and programmes on behalf of growers. The proposal should therefore be viewed in the context of both levy equity and Summerfruit NZ's current financial position.

The Decision Rests With Members

While the Board has agreed to put this motion forward, the decision ultimately rests with members. The Board is making a recommendation, but it will be growers who decide whether the proposal proceeds. Members will have the opportunity to vote either for or against the resolution at the Summerfruit NZ AGM.

This year's AGM will be held online on 6 November – more details will be shared closer to the time.

We will also host a webinar ahead of the AGM to explain the proposal in more detail, walk through the analysis and provide an opportunity for growers to ask questions.

To ensure your vote can be counted, please make sure your planted hectare declarations are up to date. If you have any questions about your declarations, voting eligibility or the AGM process, please contact Edwin Spencer at edwin.spencer@summerfruitnz.co.nz.

Board Nominations Opening Soon

Nominations for Producer Director and Exporter Director positions will open in early September.

Following the dissolution of the Summerfruit Exporters Committee (SEC), exporter directors will now be elected directly by Summerfruit NZ's exporter members. This follows the constitutional changes approved by members at last year's AGM and brings the exporter election process into line with the approach already used for producer directors.

As part of that transition, Russell Faulkner and Craig Hall have been serving as interim exporter directors. Two exporter director positions will now be filled through the election process. Russell has advised that he does not intend to continue, while Craig's position will be determined through the election.

On the producer side, Stuart Burns has advised that he will retire at the completion of his term, while Blair McLean is due for rotation and is eligible to seek re-election. As matters currently stand, we expect to welcome at least two new directors following this year's election process.

At the same time, we will be seeking expressions of interest for the Board Observer role currently held by Sam Hobbs.

If you are interested in becoming involved, I encourage you to consider putting your name forward. Whether as a director or as a board observer, participation provides an excellent opportunity to contribute to the future direction of the industry. I am always happy to have a confidential discussion with anyone wanting to learn more about the roles, as is Board Chair, Trudi Webb. 

I would also like to welcome back Rob Hollier, who was recently reappointed by the Board for a further 12-month term as a seconded director. His experience and perspective continue to be a valuable contribution around the board table.

Learning from the Goulburn Valley

Last week I had the privilege of travelling to Victoria's Goulburn Valley with a contingent of 13 New Zealand growers as part of Summerfruit NZ's latest study tour.

The generosity shown by our Australian hosts was exceptional. We were warmly welcomed by a range of growers and industry participants who opened their orchards, packhouses and businesses to share their experiences, challenges and insights. The tour also incorporated attendance at the Victorian Fruitgrowers Conference in Shepparton, providing valuable opportunities to hear about emerging technologies, research and industry trends.

Just as importantly, it was fantastic to see the relationships and connections that developed within our New Zealand group. The technical learnings were valuable, but so too were the conversations and exchange of ideas between growers.

A sincere thank you to everyone who hosted us throughout the week, particularly Nic Finger, who coordinated the programme and shared his extensive knowledge with the group. Thank you also to the New Zealand Fruitgrowers’ Charitable Trust for its financial support, which helped make the tour possible.

All the Best for the Season Ahead

Finally, as I write this, we are fast approaching another season. For many growers, attention is already turning to frost protection, irrigation systems, machinery maintenance and all the other jobs that need to be completed before spring arrives in earnest.

The start of a new season always brings optimism, but it also comes with its share of uncertainty. Whether you are preparing wind machines, checking sprinklers, monitoring frost alarms or simply keeping a close eye on the forecast, I would like to take this opportunity to wish all growers and their teams the very best for the months ahead.