Information for all levy payers and collectors
Horticulture New Zealand held a referendum in 2006 asking growers to vote on a new compulsory levy affecting all fruit and vegetables. Growers voted "YES" to the levy, and it came into effect on 23 July 2007.
The new levy replaces those previously collected by The New Zealand Vegetable and Potato Growers' Federation (Vegfed) and the New Zealand Fruitgrowers Federation (NZFF).
For more detailed information on the HortNZ levy, growers should call 0508 467 869.
The HortNZ Board is proposing a grower levy of 15 cents for every $100 of sales on all fruit and vegetables, taking effect from the first year of the new levy (2013–14).
This will be the maximum levy rate under the new levy order. This is the same as the maximum levy rate in the current HortNZ Levy Order.
The major change since the last referendum is because HortNZ can no longer rely on the Fruitgrowers' Charitable Trust to top up the fruit growers' levy, we are proposing that all growers pay the same levy rate.
The proposed levy rate is forecast to raise about $2.5 million for HortNZ work on industry wide issues in 2013–14.
It is proposed the levy will operate in the same way as the existing HortNZ levy.
- it will be calculated as a percentage of the gross sales value for domestic sales and a percentage of the free on board value for exports,
- it will be deducted from payments made to growers at the first point of sale by wholesalers, exporters, processors and post harvest entities.
Fresh vegetable, potato, process vegetable and fresh tomato growers currently paying an integrated HortNZ and Product Group levy will receive information about the proposed Product Group portion of the levies which will be additional to the HortNZ rate.
- See how Hortnz saves growers money
- Read the key features of the Levy Proposal
- See growers questions answered
- Ask questions or give feedback about the levy
Do I have to pay or collect a levy?
All commercial growers of the fruit and vegetables listed below are legally required under the Commodity Levies (Vegetables and Fruit) Order 2007 to pay a levy on the sale of those fruit and vegetables grown in New Zealand:
- Fruit (except berryfruit, olives and grapes)
- Fresh tomatoes
- Fresh vegetables
- Process vegetables
- Other vegetables (Asparagus, Kabocha, Process Tomatoes)
Berryfruit and olive growers are members of HortNZ though a subscription paid by their product group, so HortNZ does not collect levies from them.
HortNZ does not represent grape growers, or mushroom growers and these growers do not pay levies to HortNZ.
Do I have to pay any other levies on my fruit and vegetables?
Some horticultural crops are also represented by Product Groups that are affiliated to, but separate from HortNZ. Many of these Product Groups also have Commodity Levy Orders requiring growers to pay a levy directly to that Product Group. A list of other commodity levies applying to fruit and vegetables can be found by searching for "Commodity" under "Statutory Regulations" on the website www.legislation.govt.nz.
How is the levy to be paid?
Via collection agents
If you buy fruit or vegetables from growers for resale, export or for processing, or sell fruit or vegetables on behalf of a grower (as a wholesaler, agent, broker, etc.) you are liable to collect the levy. Submit payments to HortNZ with the HortNZ Buyer Created Invoice (pdf 75KB).
If you are a grower and you sell fruit or vegetables that you have grown directly to the public e.g. gate or roadside sales, internet sales, farmers or flea markets, restaurants or own exports, you must complete a Growers' Direct Levy Declaration (pdf 78KB) each year, covering the 12 month period from 1 July to 30 June. Payments must be received by 30 September in the same calendar year or a penalty may be incurred.
How will the levy be calculated?
For domestic sales, the levy is calculated as a percentage of the gross sales value at the first point of sale. The gross sales value is the price or value before the deduction of any costs or charges (e.g. commissions, fees, freight, grading, storage, packaging or packing costs) and exclusive of GST.
For exported produce, the levy is calculated as a percentage of the Free on Board (FOB) value. If the produce is processed prior to the first point of sale, the levy will be calculated on the notional process value, which is the amount of money that the grower would have received if the produce had been sold to a processor instead of processed by the grower.