New Zealand kiwifruit growers have voted unanimously to provide compensation funding to their colleagues affected by hail.
At a New Zealand Kiwifruit Growers Incorporated (NZKGI) forum held last week, growers voted in favour of an opt-in component to the hail compensation fund that will provide additional funds to support those growers that were affected by hail in the 2009 season.
The storms hit the Bay of Plenty region on May 11 and caused damage to an estimated 350 orchards in the affected area.
A hail compensation fund, similar to insurance cover, already exists to provide financial support and compensation for growers affected by hail. Approximately 2.2 million trays of green kiwifruit - less than three per cent of the total harvest volume - and 150,000 trays of Zespri Gold - less than one per cent - qualify for compensation under the fund for the season.
The existing hail fund is set at a maximum of NZ$2m (£776,000) for green fruit and NZ$2m for Zespri Gold. Due to the extent of the damage to orchards growing green fruit, the kiwifruit industry decided to review additional sources of funding.
An injection of NZ$1.4m will be made by the grower pool, using funds previously earmarked for crop management activity that was halted when the hail hit.
An additional financial contribution of NZ$500,000 will be made by Zespri Corporate. This will ensure that a minimum payment of NZ$1.75 can be made per eligible tray of green fruit and NZ$2.35 for organic.
