Why do we have a commodity levy?
Summerfruit NZ is an incorporated society and exists to support producers, exporters and others associated with our industry – whether they are small or large, regardless of location or length of time in the industry. Our strength is in our ability to work together as a group.
Therefore, we have a levy to enable Summerfruit NZ to work for the good of the industry, rather than for the benefit of individual growers or exporters.
This includes spending on activities that help us grow and protect our industry, such as:
- crop protection
- grower representation
- market access
- information sharing.
Who pays the levy?
All those who grow summerfruit for commercial purposes pay the levy, even if they are not a member of Summerfruit NZ.
The only exception to this is growers who sell their fruit to Heinz Wattie’s on contract for processing. This group is exempt from the levy.
The levy is either paid directly by growers to Summerfruit NZ or deducted by collection agents and paid to Summerfruit NZ on behalf of growers.
Why are Heinz Wattie’s suppliers exempt?
Heinz Wattie’s charges its suppliers a research and development levy, and it would be unfair to deduct a second levy. Summerfruit NZ and Heinz Wattie's frequently conduct joint research and share the outcomes.
How is the levy calculated?
The levy is calculated for summerfruit sold in New Zealand as follows:
(a) on the basis of the sales value of the summerfruit, for summerfruit sold in New Zealand as whole fresh fruit by, or on behalf of, the commercial grower; or
(b) on the basis of the sales value of the summerfruit exported as whole fresh fruit by, or on behalf of, the commercial grower, in which case the levy will be calculated on the sales value received by the grower after deduction of all export-related costs (including international freight); or
(c) if the commodity is processed before the first point of sale, on the basis of the notional process value of the summerfruit, for summerfruit processed by, or on behalf of, the commercial grower.
How can I pay my levy to Summerfruit NZ?
Growers (who pay directly) and collection agents must submit their levy declarations online through the Summerfruit NZ portal, simply login and follow the levy process. Once your declaration has been received you will automatically be invoiced for the amount you declared.
If you don’t currently have a Summerfruit NZ portal login, please contact firstname.lastname@example.org to request one.
Why is the rate for cherries different to the rate for other summerfruit crops?
The rates have been set this way to be fair and equitable, reflecting the total amount of levy all summerfruit growers pay on their overall production per hectare regardless of fruit type.
What is the money used for?
Levy payments make up more than 70% of our total income. Levy money is used to pay for activities that support the industry (including research, market access, export and compliance, crop protection, biosecurity, communications with members, liaison with government, etc) and for the running of Summerfruit NZ itself.
An outline of what the previous levy order has been invested in to can be found here.
You can also review last year's levy spending in the Annual Report which outlines our activities in more detail.
If a commercial grower uses a collection agent, the agent must pay the levy.
The collection agent may charge Summerfruit NZ a collection fee of not more than 4% of the levy payable (exclusive of GST), plus the GST payable on the fee by deducting the fee plus GST before paying the levy to Summerfruit NZ.
The collection agent may recover the levy on summerfruit bought from the commercial grower by deducting the amount of the levy from the payment made to the grower for the summerfruit.
The collection agent may recover the levy on summerfruit sold, processed, or exported on the commercial grower’s behalf by recovering the amount of the levy as a debt due from the grower.
What information must growers, who pay their own levy, provide to Summerfruit NZ?
A commercial grower who sells, processes, or exports their own summerfruit in any month must give Summerfruit NZ written notice of:
(a) the sales value and quantity of summerfruit sold by the grower; and
(b) the notional process value and quantity of summerfruit processed for sale by the grower; and
(c) the sales value and quantity of summerfruit exported by the grower.
What information must collection agents, who pay levy on behalf of growers, provide to Summerfruit NZ?
Every collection agent who buys summerfruit from a commercial grower or sells, processes, or exports summerfruit on behalf of a grower in any month must give Summerfruit NZ written notice of:
(a) the full name, postal address, email address, and telephone contact details of the grower from whom the summerfruit was bought; and
(b) the purchase price and quantity of summerfruit bought from the grower; and
(c) the quantity of summerfruit sold, processed, or exported by the agent on behalf of the grower and the price paid for, or the value placed on, that quantity; and
(d) the amount of levy collected and paid to Summerfruit NZ in relation to that quantity; and
(e) the amount of collection fee deducted in relation to that quantity (if any); and
(f) the rate at which the levy was calculated.
When is the information required to be provided?
The information required must be provided:
(a) at the time of payment; and
(b) in relation to each fruit type; and
(c) accompanied by the amount of levy for the month.
When is a levy due and what is the latest date for payment?
The due date for payment of the levy to Summerfruit NZ is:
(a) the date of sale, in the case of summerfruit sold –
(i) by the commercial grower; or
(ii) by a collection agent on behalf of the grower; or
(b) the date of processing, in the case of summerfruit –
(i) processed without having been sold by the commercial grower; or
(ii) processed by a collection agent on behalf of the grower; or
(c) the date of export, in the case of summerfruit exported –
(i) by the commercial grower; or
(ii) by a collection agent on behalf of the grower.
The latest date for payment of the levy is the 20th day of the month after the month in which the due date occurs.
What if the levy is not paid on time?
If any amount of the levy has not been paid by the close of the latest day for payment, the following amounts must be paid to Summerfruit NZ in addition to the amount otherwise payable:
(a) 5% of the amount of the unpaid levy
(b) 2% of the amount of the unpaid levy (excluding additional levies owing under this clause) for each month that the amount is outstanding.