The industry operates under the Commodity Levies (Avocados) Order 2019, under the Commodity Levy Act. Annually at the Annual General Meeting growers vote for the rate of the commodity levy for the next season. Every six years, avocado growers vote on the implementation of the Order, to set the maximum levies that can be charged within this legislative framework.
The maximum levy for fresh fruit sold in New Zealand is currently 3% of its value at first point of sale.
The maximum levy for export fruit is currently 50 cents.
Growers vote annually on the Commodity Levy rate for the following season at the NZAGA Annual General Meeting (AGM).
The Commodity Levy funds the following activity:
- 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 Commodity Levy Order sets the maximum rates payable by the grower. The actual rate for the following year are set at each Annual General Meeting, and may be lower than the maximum allowed for in the Order.
About the Commodity Levy
- As the growers’ representative body for New Zealand avocado growers the NZAGA undertakes industry activities, such as research and development, food safety programmes and promotion on behalf of our growers. Currently NZAGA collects a compulsory levy on the sale of local market and export avocados to fund industry activities. This levy is collected under the auspices of the Commodity Levies Act 1990.
- 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
- 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 hereto 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.