Commodity Levies (Apples and Pears) Order 2024

The New Zealand government has imposed a commodity levy on commercial apple and pear growers, payable to New Zealand Apples and Pears Incorporated (NZAPI) to fund the support and services it provides as the industry body.

A commodity levy, once imposed by a commodity levy order, must be renewed every six years.  The current Commodity Levies (Apples and Pears) Order 2018 (Levy Order) expires on 16 January 2025.  Consequently, NZAPI is seeking support for the continued imposition of a levy during 2024. 

The Strategic Review undertaken in 2023 formed a basis for consultation and engagement with growers. The review process continues in early March with consultation with growers and other persons likely to be affected by the payment or collection of the levy (such as collection agents) through in-person regional meetings, webinars, newsletters, website updates, and public notices. 

In April, a referendum will be held for potential levy payers (principally our current growers) to vote on the Commodity Levy Order. This will be followed by a formal application in May from NZAPI to the Ministry of Primary Industries (MPI) requesting renewal of the Levy Order.

While the Levy Order is a very important piece of legislation for the industry, more importantly it is what brings us together as an industry, formalising how we work together, and how NZAPI provides services and support to growers. Because of this, it is critically important that you, the grower, are part of the renewal process.

NZAPI held grower meetings in early March to discuss the outcomes of the recent Strategic Review, and how these impact the spending of commodity levy funds.  Proposed changes to the Commodity Levy Order were discussed, and your feedback has provided input into the final application to MPI.  

Growers’ views on how NZAPI should represent and advocate at an industry level are important. Every opinion counts. 
Any grower wanting to provide feedback can do so by:

• Talking to NZAPI staff or a board member at a grower event.
• Submitting written comments via the feedback form. 
• Calling NZAPI on 06 873 7080 
• Emailing NZAPI at info@applesandpears.nz 
• Commenting directly in writing to the Minister for Agriculture, Parliament Buildings, Wellington.

In 1990, the government introduced the Commodity Levies Act (Act) to provide a legal basis for the imposition of a levy payable to primary industry groups to fund primary industry activities.  This is because it was recognised there is a need, and a cost, for the support and services the industry requires to function and grow in New Zealand and to engage and export around the world.

The Commodity Levies (Apples and Pears) Order made under the Act imposed a levy on apples and pears, payable to NZAPI as the industry body for pipfruit.

Today, more than thirty years on, our Levy Order continues to be the foundation of what we, as an industry body, do for our industry. The levy is how growers fund NZAPI to invest and grow the industry, while providing growers with day-to-day services required for their operations, many of which would be otherwise inaccessible for individual growers.

The person who will be primarily responsible for the payment of the levy is the apple and pear grower. An apple and pear grower is the person who is, at the relevant time, the occupier of land used for growing trees for the production of apples and pears from which there was harvested at least 1,000 kilograms of apples and pears during the levy year ending on the previous 31st day of October.

No apple and pear grower will be exempted from paying.

The levy is primarily used by NZAPI to support and deliver services to growers.
It is proposed that NZAPI, or any subsidiary of NZAPI, may spend levy money for the following purposes relating to apples, pears, or growers:

• Market access, including crop protection, to support and protect market access;
• Biosecurity, including activities to protect the industry from biosecurity risks and to support response and recovery;
• Advocacy and communications, representing industry views and communicating effectively with all stakeholders;
• Extension services, including transfer of technical information;
• Management and administration services for the organisation to support the industry;
• Governance, including resourcing NZAPI to support its board and growers;
• Research and development;
• Workforce attraction and development, including education and training, and maintaining viable access to labour mobility schemes;
• Environment, including understanding and promoting sustainable resource use, and minimising the environmental impact of the industry; and
• Project management to enable and support the delivery of above activities.

This list has been updated to align with the Strategic Review outcomes and priorities, and is included in the Proposed Amendments to the Commodity Levies (Apples and Pears) Order.

To view the Purposes for which levy money may be spent in the current Commodity Levies (Apples and Pears) Order, click here. (pdf)

The commodity levy order sets both the role of NZAPI as the levy collector and sets the maximum levy amount. The levy is reconfirmed yearly at the NZAPI AGM. In 2023, the levy was reduced by vote to 1.15 cents per kilogram.

All levy paying growers who are therefore members of NZAPI can vote in the Commodity Levy Order referendum which will be held between Monday 8 April and Friday 3 May, 2024. There will be both online and postal voting options.

The voting will be managed independently by Electionz (as Returning Officer) who will send instructions to all growers (to the individual listed in the Financials - Voting communications field in your grower registration). Please ensure this information is up to date in your NZAPI grower registration.

Following consulation with stakeholders, NZAPI is now proposing only one change to the Commodity Levy Order:

1. Additional levy payable if levy not paid in time can be charged at NZAPI’s discretion.
   The current levy order makes the payment of an additional levy mandatory. NZAPI’s preference is to have the discretion as to whether to require an additional levy to be paid where a levy is not paid on time.   
2. The Purposes for which levy money may be spent have been updated to align with NZAPI’s new strategic plan. 
   To view the current 'Purposes for which levy money may be spent', along with the proposed update, click here.