19 Aug 2011

Zespri marketing approach works best - Eastpack

1:58 pm on 19 August 2011

A director of Eastpack, the second biggest kiwifruit post-harvest operator, says it would be a mistake for the marketing structure of kiwifruit marketer Zespri to be changed.

A judge at the High Court in Auckland has rejected claims by produce company Turners and Growers that Zespri breached the Commerce Act by tying producers into exclusive contracts and controlling kiwifruit exports to Australia in the 2008-2009 year.

Mike Ashby says Zespri's monopoly on exporting kiwifruit to all countries except Australia is a strategic advantage for New Zealand growers.

He says experience has shown that unfettered competition among marketers drives prices down, which benefits the consumer but not the producer.