Zespri’s failed Shanghai court appeal will have no bearing on the company's development of the Chinese market, according to New Zealand Kiwifruit Growers’ president Neil Trebilco.
The single desk kiwifruit marketer’s was unable to have charges relating to the underpayment of customs duties on kiwifruit imports by its Chinese subsidiary overturned earlier this week.
Consequently, the subsidiary has been forced to pay a US$950,000 fine handed down at an initial hearing in March, while one of the company’s employees faces a five-year prison sentence.
Trebilco said the case focused almost solely on the payment of duties, and while it was disappointing that Zespri’s grower shareholders would be footing the bill, the implications would have a minimal impact at market level, with sales seemingly unaffected.
Trebilco told Radio New Zealand Chinese consumers were more concerned about food safety than decisions made in the courtroom, and said they would continue buying New Zealand grown fruit because of the country’s reputation as a clean, high-quality producer.
New Zealand Kiwifruit Growers launched its own investigation into the case in March.Trebilco was confident the matter would strengthen the relationship between New Zealand’s horticulture industries and Chinese officials.
“The key learning for us has been, in our industry, is that you have to make sure that you build relationships and you've got to build relationships, obviously not only with the importers but with the authorities as well, to make sure that you're doing what you need to do,” Trebilco told Radio New Zealand.
