HortNZ Levy referendum results good for the industry

NZFGA President Daniel Schuurman says he is glad to see that the vast majority of the horticulture industry can see the value in a strong representative body.

 Horticulture New Zealand announced last month that their commodity levy referendum was approved by almost 85% of growers. For the next six years there will be a levy of 15 cents for every $100 of sales on all fruit and vegetables to raise about $2.5 million a year. The money will be used by HortNZ to work on industry wide issues like biosecurity policy, land and water use issues and seasonal labour needs.

Mr Schuurman says the horticultural industry obviously see that paying 0.0015% of gross sales is real value for money.

“This would see someone with a $500,000 turn over paying only $750 a year, I think that is real value for money. Considering that the same grower sending his product to auction will pay a 1% advertising levy costing him $5000 over the same period, the levy for HortNZ looks remarkably cost effective,” says Mr Schuurman.

“This is a very important message for flower growers that the main players in horticulture do see great value in a strong and well resourced body. It is especially important during challenging times for an industry to work together and to have a unified voice.”

Mr Schuurman says it would be wise for the NZFGA to revisit the levy option in the future.

“The primary issue for the NZFGA in its ability to provide effective representation comes down to money available, more often than any other impediment.”

Mr Schuurman says HortNZ provides $30 of value for every one dollar paid by the grower which is not only cost effective but of enormous benefit to their bottom line.

“Our current membership costs are even lower as a percentage of turnover but even at these extremely cheap rates some growers still do not choose to join. They don’t appear to understand that it actually costs them money by not joining. They can get great benefits from the discounts and services we offer which could save them thousands of dollars a year.”

Mr Schuurman says that doesn’t even count the vital job the NZFGA is doing representing growers interests with MPI, EPA and the various ministers and ministries.

“Without the NZFGA to represent them, government would simply ignore our industry and make decisions that could be fatal to many of our growers. Under the new biosecurity legislation MPI can levy our industry at will for any costs it feels we should bear, or even impose a national levy as happens in other countries like the UK.”

Mr Schuurman says the only way for the flower growers industry to even maintain the status quo, let alone improve it is by having a strong national body and a unified voice.