About the Commodity Levy
The Commodity Levies Act was introduced in 1990. The Act’s principal role is to provide a method to fund primary industry activities. Under strict rules industry groups can elect to impose upon themselves a levy with legal backing. The Act requires the industry to consult with the potential levy payers and conduct a referendum every six years to determine if there is grower support for the levy.
Commodity Levies (Avocados) Order 2019
NZ Avocado Growers’ Association Inc. operates under the Commodity Levies (Avocados) Order 2019, under the Commodity Levies Act. Growers vote annually for the rate of the commodity levy for the following season. Every six years, growers vote on the implementation of the Order, to set the maximum levies that can be charged for the following 6 years within this legislative framework.
- Following the successful result of the 2018 Commodity Levy referendum, the new Commodity Levies (Avocados) Order 2019 came into force on 11 July, 2019.
- Click here to download a copy of the Commodity Levies (Avocados) Order 2019.
- As per the new Commodity Levies (Avocados) Order 2019, the rates for the first levy year applied from 11 July 2019.
Commodity levy on avocados sold in New Zealand
Under the Commodity Levies Order 2019, the maximum levy for avocados grown and sold in New Zealand for consumption as fresh fruit is 2.5% of the value measured at the first point of sale.
Commodity levy for avocados exported
Under the Commodity Levies Order 2019 the maximum levy for avocados exported from New Zealand is $0.35 per 5.5 kg tray equivalent
Avocado commodity levy referendum
Voting for the renewal of the avocado Commodity Levy Referendum opens on 19 July 2024 with voting closing on 23 August 2024.
Growers will be receiving information packs and voting papers by email from electionz.com who have been contracted to deliver the referendum process.
If you would rather receive a postal voting pack please contact info@nzavocado.co.nz before the voting opens on 19 July 2024.
As growers review the levy proposal as well as the associated annual and five year plan, NZ Avocado hopes to be able to answer any questions prior to voting.
Uses of the commodity levy
The Commodity Levy funds the following activities:
- research, development, and agricultural extension
- market development and access
- promotion of avocados and the avocado industry
- quality assurance
- industry communications
- day-to-day administration of NZAGA
- readiness and response to biosecurity threats.
Under the Commodity Levies (Avocados) Order 2019, the NZ Avocado Growers’ Association Inc, ‘NZAGA’ collects a compulsory levy on the sale of avocados to fund industry activities on behalf of its grower members. This levy operates in accordance with the Commodity Levies Act 1990.
A Commodity Levy Order lasts for six years after which payers of that levy must vote to continue that levy. Growers will be asked in 2024 to vote on a renewed levy to apply from the 2025-26 season.
Collection of levies
The commodity levy on avocados sold in the NZ market is a grower responsibility, though this may also be collected and paid to NZAGA by a collection agent (a body that is selling avocados on your behalf, e.g. a NZ marketing company or an online avocado seller). Please note that avocados sold online, at your gate or at a Farmers market are all required to pay the commodity levy. It is the growers responsibility to ensure the levy is paid.
The export levy will be deducted from any payment the grower receives from their exporter and paid by the exporter to NZAGA.
All levies are subject to NZ goods and services tax.
How to submit commodity levy payments?
You can submit the commodity levy deduction payment by filling out the digital form below.