Background:

1. Under the New Zealand Horticulture Export Authority Act 1987 (“the Act”) no person shall export any prescribed product unless that person holds an export licence in respect of that product.
2. A “prescribed product” for the purposes of the Act includes avocados.
3. Before issuing an export licence the New Zealand Horticulture Export Authority (“the HEA”) is required to:

   (i)

   consult the recognised product group for its views on: (a) the applicant’s suitability as an exporter of the product for which the licence is sought; (b) the likelihood that the applicant would carry on export operations in a way that would not prejudice the current export marketing strategy for the product; and

   (ii)

   consider all views received from the group within a reasonable time of asking.

4. NZ Avocado is the recognised product group for avocados.
5. NZ Avocado has formulated an export marketing strategy (“EMS”) for avocados.
6. Before expressing its views to the HEA on the Exporter’s application for an export licence NZ Avocado requires various undertakings from the Exporter.

Now therefore it is agreed as follows:

1. Exporter obligations – compliance with EMS

1.1

For as long as it holds an export licence in respect of avocados the Exporter will comply with the obligations of Exporters stipulated in the EMS, and with the terms and conditions set out in this agreement, and with any conditions imposed in respect of such export licence by the HEA.

2. Export Systems fee

2.1

The Exporter will prior to any payment to a grower or other person entitled to the proceeds of sale of avocados exported by that Exporter deduct such fees per 5.5kg tray or tray equivalent as set in the EMS and payable by the Grower, and pay those fees to NZ Avocado for the purposes set out in the EMS.

2.2

The Exporter will also pay such fees as set out in the EMS and payable by the Exporter to NZ Avocado.

2.3

The reference to “tray” or “tray equivalent” shall refer to the standard export pack containing 5.5 kilograms of fruit.

2.4

The calculation of such payment shall be completed in accordance with the weekly export sales reports provided by the Exporter to NZ Avocado pursuant to clause 1 hereof and shall be payable by the 20th day of the month immediately following remittance for the sale being received for the export consignment.

2.5

Payments not made by due date shall thereafter bear interest at the rate of 2% per calendar month adjusted with daily rests up to the date of payment.

3. Registration fee

3.1

Registration fee

(Excl GST)

(Incl GST)

3.1.1	$5,510.00	$6,336.50

3.2

Such fee is not refundable if the Exporter does not export fruit.

4. Other contracts

4.1

The Exporter has or will conclude a contract with registered packers and growers that include as specific terms:

4.1.1

an undertaking by the other party to comply with the EMS;

4.1.2

an acknowledgement and consent by the Grower to deduct, and account to NZ Avocado for, the management fee payable by the Grower under clause 2 hereof;

4.1.3

waiver by all parties of the principles set out in the Privacy Act to the extent necessary to implement the EMS.

5. Confidential information

5.1

Any information provided by the Exporter is provided on the basis it can be used for all the purposes of NZ Avocado under the EMS and for the purposes of the Exporter’s application for an export licence. The Exporter is entitled to have access to and may request correction of the information collected by NZ Avocado.

5.2

The Exporter hereby consents to the registered packers and growers supplying to NZ Avocado or the Exporter disclosing such information to NZ Avocado as it may require to implement the EMS or to report to the HEA on the Exporter’s application for an export licence.

6. NZ Avocado obligations

6.1

6.1 NZ Avocado hereby acknowledges:

6.1.1

that it will immediately on completion of this agreement and subject to the provision by the Exporter of such information as NZ Avocado may reasonably require provide its views to the HEA;

6.1.2

that it will thereafter diligently carry out the obligations imposed on NZ Avocado by the EMS;

6.1.3

that it will provide assistance specifically to the Exporter if it encounters difficulties with regulatory authorities but in that event may require the Exporter to meet any costs and disbursements incurred by NZ Avocado.

7. Term of Agreement

7.1

This agreement shall relate to the avocado export season which runs from 1 May in any one year to 30 April in the following year.

8. Conflict

8.1

In case of conflict between this agreement and the EMS, the EMS will prevail.

9. Debts

9.1

NZ Avocado shall not be bound to register any Exporter who owes money to NZ Avocado or HEA whether that liability arises under the EMS or otherwise.

10. Default

10.1

In the event of the Exporter defaulting in compliance with its export licence or any conditions attached to that such that the HEA revokes that licence or varies a condition or conditions attached to that licence the Exporter shall be liable to NZ Avocado in respect of any costs, disbursements or loss sustained by NZ Avocado as a result of such default by the Exporter.

Further assurance

11.1

Each party agrees with due diligence to execute all documents and perform all acts and things as the other party may reasonably require to carry out the terms of this Agreement.

Notices

12.1

Any notice required or permitted to be given in this Agreement shall be:

12.1.1

in writing; or

12.1.2

delivered to the other party personally, sent by registered post or sent by facsimile transmission or email.

12.2

Any such notice shall be deemed to be given when so delivered personally or sent by facsimile transmission or email or 2 business days after being sent by post in the prescribed manner, or at the following addresses for each party:

NZ Avocado Industry Ltd
PO Box 13267
TAURANGA 3141
Phone: 07 571 6147
Fax: 07 571 6145
Email: info@nzavocado.co.nz