A significant AGM decision
Our recent Annual General Meeting (AGM) was an important one for Summerfruit NZ, and I want to start by thanking everyone who took the time to participate.
One of the more significant decisions was the reduction in the commodity levy applying to peaches, nectarines, plums and apricots from 1.50% to 1.25%. While 0.25 percentage points might not sound significant, it represents a reduction of close to 17% in the levy rate.
I particularly want to thank the growers I spoke with during the investigation phase. Those conversations helped us test our thinking and develop the advice that went to the Board. I also want to thank everyone who participated in the AGM and voting process. Good decisions depend on members being prepared to engage.
There were two main considerations behind the change.
The first was fairness. While only peach, nectarine, plum and apricot growers have received a reduction, our analysis showed that, on a levy-per-hectare basis, these growers had been contributing more than their fair share for some time. The reduction helps restore greater balance across our crop groups.
It was also great to see the support of cherry growers for the change. To me, that reflects the sense of unity within our industry. While the direct financial benefit sits with the other crop groups, there was recognition that this was about getting the balance right for everyone.
The second was our financial position. Summerfruit NZ has a strong balance sheet and healthy reserves. Maintaining reserves is important, but equally, we shouldn't simply continue collecting levy surpluses because we can.
The levy is growers' money. We have a responsibility to operate within our means, maintain appropriate reserves and not take more than we reasonably need to deliver for members.
I appreciate that the levy is modest compared with many of the inflationary costs that growers are facing, but every bit counts. This decision both improves fairness and reinforces that financial discipline.
Making the money we collect work harder
Collecting the right amount is only one side of good stewardship. The other is making sure the levy dollars we do collect are invested where they can make the greatest difference.
That was front of mind during our recent visit to Central Otago with MPI officials. There is a separate article in this edition covering the visit, but I personally want to thank the growers who took time to meet with officials and talk openly about the challenges and opportunities they are seeing on the ground.
It is important that government understands the realities of our industry. There is also an opportunity for us to maintain that engagement and deliberately bring government partners with us as we work towards sustainably growing the industry.
For a relatively small industry, partnerships matter. Where our priorities align, working with government and others can help us leverage growers' levy funding and access capability we could not easily fund on our own.
We are already seeing examples of this.
Strategy matters
At its October meeting, the Board approved our new market access development strategy. Exporters contributed to its development, and we will share the final strategy with them when we meet later this month.
I want to acknowledge Summerfruit NZ Commercial Manager, Raj Singh's contribution to this work. His input, together with that of our exporters, has helped us develop a much clearer view of our market access priorities and where our effort is most likely to deliver value.
The strategy was also informed by a global market scan prepared for us by PricewaterhouseCoopers (PwC), with funding support from the Ministry of Foreign Affairs and Trade (MFAT). This is a great example of what can be achieved through partnership.
It also gives us something tangible to take back to MPI and other government partners. Rather than arriving with a long shopping list, we can clearly articulate what matters most to the industry, why it matters and where we believe effort should be focused.
We are taking the same approach to biosecurity, and I also want to acknowledge Summerfruit NZ Biosecurity and Operations Manager, Edwin Spencer's contribution to the strategic review of our biosecurity priorities. Over the coming months, Summerfruit NZ Technical Manager, Sean Gresham will be working to update our R&D strategy – you can expect plenty of questions from him!
Market access, biosecurity and R&D are very different areas, but the principle is the same: strategy gives us discipline around how and why we invest growers' levy dollars.
As a small industry, we cannot do everything. Strategy helps us decide what matters most, but just as importantly, what we shouldn't be doing.
Keep talking to us
None of this work should happen in isolation.
Our strategies must be informed by the experience, priorities and feedback of our members. The same applies when we consider something as fundamental as levy rates.
The conversations we have with growers and exporters help shape the advice we give the Board, the priorities we take to government and ultimately where levy funding is invested.
So please stay connected. Pick up the phone, send me an email, talk to your Board members, and take the opportunity to contribute when we ask for input. I am always happy to hear what is working, what isn't and where you think we should be focusing our effort.
For me, the AGM decision and the strategic work underway are closely connected.
Our responsibility is simple: collect what we need, invest it carefully and be clear about why we're doing it.
Ultimately, that's what making every levy dollar count is about.