New Zealand Kiwifruit Growers Incorporated president Neil Trebilco has questioned the motives behind a multimillion-dollar High Court claim filed against the country’s single desk marketer Zespri.
Last week it was revealed Zespri’s former Chinese importers, Shanghai Neuhof Trade Company and Shanghai Hui Zhang Logistics, were suing the grower-owned exporter for NZ$33.5m (US$28.3m), following what they claim was the wrongful termination of their supply contracts.
It followed a high-profile Shanghai court case last year, relating to the under-declaration of customs duties. Zespri was subsequently fined RMB5m (US$800,000), while Xiongjie Liu, of Neuhof Trade, was sentenced to 13 years jail for his involvement in the smuggling case.
Liu’s nephew, Auckland-based Jhun Si, is believed to be orchestrating a move to establish a second desk for exporting New Zealand-grown kiwifruit to China, along with Southern Fresh Fruit Exports Limited.
Trebilco believed the new High Court claim might be an attempt to create further unrest within New Zealand’s kiwifruit industry, in order to push the duopoly model through.
“There may be some parties who want to keep this story in the media, in the interest of pushing their own agenda,” Trebilco told Asiafruit. “Generally, I’m surprised Shanghai Neuhof Trade are taking this action, as they, along with Zespri, were found liable of in a Shanghai court. Not only were they found guilty of under-declaring customs duties but they pleaded guilty. I don’t see how it provides grounds for a trial to be heard here in New Zealand.”
Trebilco’s response was consistent with a statement provided to Asiafruit by Zespri, which claimed the Shanghi court had already rejected the importers’ claim for compensation. “We expect the New Zealand courts will do the same,” a Zespri spokesman said.
John Thompson, president ofright-wing political party ACT Primary Industry, claims to have seen the High Court claim and disagrees withTrebilco and Zespri.
'The claim being made here is the not the same case Zespri answered in the Shanghai court,'Thompson told Asiafruit. 'Zespri have suggested the claim relates to matters last decade but as far as I am awareShanghai Hui Zhang were their agent in 2012.'The only way I can see this not going to trial is if Zespri settle out of court, which would be very inconsistent with their stance to date.'
Thompson heads up Southern Fresh Fruit Exports, and would act as the managing director of the alternate Chinese kiwifruit exporter, Asiafruit understands. He pledged to keep his business and political interests separate in a letter penned to New Zealand's Minister for Primary Industries Nathan Guyearlier this year.
ACT have continually called on Guy to launch an inquiry into the structure of the New Zealand kiwifruit industry over the last 24 months.Earlier this week, the party's spokesman Don Nicolson told the New Zealand media the potential for a new legal case against Zespri would hurt the country’s kiwifruit growers.
“ACT has been calling on the Minister for Primary Industries to hold an independent inquiry into the behaviour of Zespri, which has experienced a run of negative press over its actions in Asia, the Serious Fraud Office inquiry, a conviction for smuggling and now a new statement of claim,” Nicolson was quoted as saying by voxy.co.nz. “Zespri shareholders and kiwifruit growers will now be faced with paying for even more legal costs and potentially more fines than they have had to endure so far.”
While Trebilco did not comment on Thompson’s potential conflict of interest, he agreed the matter would have wider implications for the industry.
“At the moment the optimism amongst the industry is at its highest level for a number of years but whenever you’re in the media for the wrong reasons there is an impact, so it’s disappointing from that point of view,” Trebilco explained. “Whether the claim leads to court proceedings or not, there will be some legal costs for Zespri, so, with Zespri being a grower-owned marketer, it’s a little bit disappointing considering it will be grower levies that are used to foot these costs.”
