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

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.

The SGM presentation to consult on how the levy is spent is here: Login to see member content

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.

AVOCADO COMMODITY LEVY DEDUCTION PAYMENT
GST No. 21-246-934
These levies are collected in compliance with the Commodity Levy (Avocados) Order 2019
Privacy Act 1993 The information you supply to NZAGA on these forms is being collected for statistical and research purposes only. Natural persons have the right to access and correct personal information about themselves held by NZAGA. NZAGA will not disclose the personal information supplied by you to any other person or agency.

Address
To avoid volume duplication, was this fruit packed with a NZ Avocado registered packer?(Required)

Or you can download and return this form to us: