Commodity Levy

The Commodity Levy is set every six years and operates under the Commodity Levy Order for Avocados, within the Commodity Levy Act.

The Commodity Levy for fresh avocados sold in the New Zealand market is collected at the first point of sale and is a maximum of 3% of the sale price. Local Marketers act as a collection agent and forward the levy to NZAGA on a monthly basis.

The Commodity Levy for export avocados is collected per tray exported and is deducted by the exporter from the grower return. Under the current Order, this levy is set with a maximum of 50c per export tray.

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:

  • Governance
  • Administration and management
  • Grower communications
  • Promotion
  • Research

An Export Systems Fee is charged per tray exported and is deducted by your exporter from your grower return and forwarded to NZ Avocado Industry Ltd monthly. The Export Systems Fee is approved annually by growers at a AGM.

All growers intending to export their fruit must register with NZ Avocado Industry Ltd annually, prior to their fruit being exported. Packhouses and Exporters must also register with NZ Avocado annually. Registration fees apply.

In order for avocados to be exported, the grower, pack house and exporter must all be registered with NZ Avocado.

The Export Systems Fee and Export Registration fees fund the following activity:

  • Export and quality systems including operational research
  • Research projects and participation in other research programmes; e.g. PGP, MBIE
  • Biosecurity and market access
  • Governance

LEVIES AND FEES FOR THE 2018-19 SEASON:

(i) Commodity Levy for fresh avocados sold in the New Zealand market,  3% of the market value at the first point of sale.

(ii) For fresh export volume:

  • Commodity Levy:
    • 20 cents per tray promotions
    • 15 cents per tray other export activity
  • 25 cents per tray Export systems fee
  • 1 cent market access fee

(iii) For avocados exported for processing:

  • Commodity Levy:
    • 15 cents per tray other export activity
  • 10 cents per tray Export systems fee
  • 1 cent per tray market access fee

(iiii) No levy is charged on processed fruit sold in the New Zealand market.

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.

2018 Commodity levy referendum

NZAGA uses the commodity levy for avocados to fund activity to deliver the industry five year plan. The Commodity Levy Order (Avocados) 2013 expires in June 2019. To reapply for a new commodity levy order, NZAGA needs to submit an application to MPI by the end of 2018. A grower referendum on the commodity levy for avocados took place in 2018.

View the 2018 Situational Analysis and Five Year Plan here.

View the 2018 Commodity Levy for Avocados consultation document here.

Email your feedback on the 2018 Commodity Levy here.

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 2013

Following the successful result of the 2012 Commodity Levy referendum, the new Commodity Levies (Avocados) Order 2013 came into force on 11 July, 2013.

Click here to download a copy of the Commodity Levies (Avocados) Order 2013.

As per the new Commodity Levies (Avocados) Order 2013, the rates for the first levy year apply from 11 July 2013.

Current Levy Rates

For current levy rates please click here

The levy order sets the maximum rates however the actual rate may be set at a lower rate at the Annual General Meeting (AGM) each year. So as levy payers, you will continue to have your say on the levy rates on an annual basis via the AGM process, irrespective of whether you are a member of the NZAGA.

Under the Commodity Levies (Avocados) Order 2013, the maximum levy rate for avocados sold in New Zealand as fresh fruit is 3% and the maximum levy rate for export avocados is 50 cents per export tray.

Current commodity levy rates for other product groups can be found at http://www.legislation.govt.nz or a summary is provided here 

Forms

Click here to download a Commodity Levy form for avocados grown and sold in New Zealand for consumption as fresh fruit