New Zealand's Independent Kiwifruit Growers Association (IKGA), established in 2010 to address what it claimed was 'a lack of transparency and accountability' in the country's kiwifruit industry, has asked single-desk exporter Zespri to answer questions about its international business practices.
The move follows a statement made two weeks ago by South Korea's Fair Trade Commission (KFTC), in which it said it would fine Zespri Won427m (US$376,742) for what it described as anti-competitive practices in the Korean market.
In a letter to the company's board of directors, the IKGA's grower liaison representative Ted Meade said it had obtained a translation of the Korean Free Trade Commission's full public statement on its investigation into Zespri's 'unfair business practices' in South Korea.
'At a time when growers are being bankrupted by Psa and the industry is literally on its knees, we are dismayed to learn that Zespri's 'unfair business practices' in the vitally important NZ$109m (US$83.65m) Korean market will cost growers about half a million dollars to pay the fine,' Meade said.
The fine imposed on Zespri, understood to have been levied for alleged commercial obstruction of kiwifruit from rival supply country Chile, comes in the wake of the recent reported seizure of 30,000 tonnes of New Zealand kiwifruit in China, following the arrest of Zespri's agent in Shanghai for alleged evasion of import tariffs since 2007.
These incidents, said Meade, raised a number of questions about the way Zespri operates globally as 'a state-sanctioned monopoly'.
'Compounding these issues for growers is the lack of transparency and accountability being demonstrated by Zespri in communicating with growers on these issues,' he argued.
'We have today written to Zespri's board of directors to urgently seek answers to these questions,' he continued, before calling on New Zealand's politicians to support further investigation.
'As the local members of parliament and ministers, we are sure that you will join us in urging Zespri to provide the country's kiwifruit growers with answers about the known or potential risks to our fruit and our returns in international markets.'
Zespri has so far declined to comment on any possible plans to appeal the KFTC decision.
