Set to be approved later this year, the new regulations outline key issues relating to Zespri and the directorship of Kiwifruit New Zealand. 

New Zealand Cabinet has agreed to significant changes in the country's kiwifruit export regulations, including rules about maximum shareholdings and divident payments at Zespri, as well as government-appointed independent directors to Kiwifruit New Zealand (KNZ).

Primary Industries Minister Nathan Guy said the updated regulations would ensure the industry is best structured for future growth.

"New amendments to the Kiwifruit Export Regulations will allow Zespri shareholders to consider setting rules around maximum shareholding and eligibility for dividend payments," Guy said.

“This will give Zespri more options for managing its shareholding available to any other company operating under the Companies Act, and will ensure that the interests of all shareholders are recognised in any decision affecting them."

He emphasized the amendments, which will also define the activities Zespri can undertake without seeking approval from capital providers, would not change the industry's single desk export framework.

"These changes will give Zespri greater certainty for investing in the marketing of New Zealand-grown kiwifruit, as well as research and development," Guy said.

Zespri welcomed the announcement, with chairman Peter McBride highlighting how the changes represent the first major review of the regulations since they were put in place 17 years ago.

"The Kiwifruit Regulations have served the industry very well and extensive industry consultation showed more than 97 percent of growers support the industry structure, with minor changes identified to position the industry for the strong growth ahead," McBride said.

"These regulatory amendments help position the kiwifruit industry for growth, as we look to more than double sales revenue to (NZ)$4.5 billion by 2025."

Zespri said the announcement was a significant milestone in a comprehensive industry review process spanning almost three years, including last year’s grower referendum which had the highest turnout in a horticultural referendum in recent history.

McBride said growers asked the government to amend the regulations to allow for closer shareholding alignment with production, update the definition of Zespri’s core business and provide KNZ with a broader skill set and more independence.

"These changes to the regulations will enable Zespri shareholders to vote on amendments to Zespri’s constitution to align shareholding more closely with production," he said.

This ensures that New Zealand kiwifruit growers continue to own and control Zespri. Our roadmap towards closer alignment will be outlined at the Zespri Annual Meeting later this month.

The company was also positive about the update of what constitutes its core business.

It said the government acknowledged Zespri’s model had evolved, recognizing that innovation, market development and marketing were essential in leading lead the world in delivering quality kiwifruit and providing strong returns to New Zealand growers.

"I would like to acknowledge Minister Nathan Guy for his continued support of the industry through this process, and I would also like to acknowledge the positive engagement shown by the Ministry for Primary Industries," McBride said.

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