About the Feijoa Commodity Levy

There is a compulsory comodity levy on feijoas grown in NZ, which is raised under the Commodity Levies (Feijoas) Order 2008

Levy orders last for six years - a referendum is held on the expiry of the feijoa levy, and the Association has just held its last referendum in 2013.

The results of the referendum were as follows:

Total returns 31
Votes for 24
Votes Against 7
Invalid votes 0
Total sales by voters $787,836
Sales by voters in favour $555,203
Sales by voters against levy $231,833

Our application for a renewed levy order is now with Government.

For further information conatct the Association - Feijoa Commodity Levy Info

Description of the Feijoa Commodity Levy

Please note that this is a description of the levy - for actual terms and obligations, you should read the levy order (at Commodity Levies (Feijoas) Order 2001).

1 Title

2 Commencement

3 Interpretation

4 Levy imposed

5 Commercial growers primarily responsible for paying levy

6 Collection agents must pay levy and may recover it from growers

7 Levy to be paid at single rate

8 Basis of calculation of levy

9 Maximum rate of levy

10 Association must fix actual rate of levy

11 When rate of levy takes effect

12 Notification of rate of levy

13 When levy payable

14 Association must spend levy money

15 Association must consult on how levy money is spent

16 Purposes for which levy money may be spent

17 Records

18 Confidentiality of information

19 Conscientious objectors

20 Remuneration of auditors

21 Appointment of mediators

22 Remuneration of mediators

23 Conference to resolve dispute

24 Conference must be held in private

25 Representatives

26 Right to be heard

27 Evidence

28 Mediator may resolve dispute in certain cases

29 Costs of mediation

30 Appeal to District Court

1 Title.

This order is the Commodity Levies (Feijoas) Order 2008.

2 Commencement.

This order comes into force on 15 May 2008.

3 Interpretation.

In this order, unless the context requires another meaning,-

  • association means the industry organisation known on the commencement of this order as New Zealand Feijoa Growers Association Incorporated
  • collection agentmeans a person whose business is or includes-
    • buying feijoas from a commercial grower (other than through another collection agent) for processing, resale, or export; or
    • selling or exporting feijoas on behalf of a commercial grower
  • Commercial grower or grower means a person -
    • whose business is or includes producing feijoas; and
    • who has more than 50 feijoa trees
  • Feijoa means fruit of the species Feijoa sellowiana or any fruit that is a hybrid of that species
  • FOB value in relation to any feijoas exported from New Zealand for which a customs entry is made, means the free on board value of the feijoas as specified in the declaration attached to, or forming part of, the customs entry
  • GST-means goods and services tax payable under the Goods and Services Tax Act 1985
  • levy- means the levy imposed by clause 4
  • levy money- means money paid under this order as a levy
  • levy year-means
    • for the first levy year, the period starting on the commencement of this order and ending on 31 October 2008:
    • for every other levy year, a period of 12 months starting on 1 November and ending on 31 October
  • Processed, in relation to feijoas:
    • means feijoas that are bottled, canned, dehydrated, dried, freeze-dried, frozen, or preserved; and
    • includes feijoa concentrate, pulp, purée, or essence (whether alone or with other ingredients).

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4 Levy imposed

A levy is imposed on all feijoas produced in New Zealand for commercial purposes.

The levy is payable to the association.

5 Commercial growers primarily responsible for paying levy

Commercial growers of feijoas are primarily responsible for paying the levy on the feijoas.

6 Collection agents must pay levy and may recover it from growers

A collection agent must pay any levy on feijoas that the collection agent-

  1. buys from a grower (other than through another collection agent); or
  2. sells, or exports, on a grower's behalf.

A collection agent who pays the levy may deduct from the payment a collection fee of-

  • no more than 10% of the amount of the levy (exclusive of GST); and
  • any GST payable on the fee.

7 Levy to be paid at single rate

The levy is to be paid at a single rate.

8 Basis of calculation of levy

The levy payable in a levy year is to be calculated,-

  • for feijoas sold by, or on behalf of, the grower in New Zealand, on the basis of the price of the feijoas (excluding GST) at the first point of sale: or
  • for feijoas processed by or for the grower in New Zealand, on the basis of the value of the unprocessed feijoas (excluding GST), which is itself calculated from the value (per kilogram) of unprocessed feijoas as fixed by the association at its annual general meeting for that levy year:
  • for feijoas exported by, or on behalf of, the grower, on the basis of the FOB value of the feijoas (excluding GST).

9 Maximum rate of levy

The maximum rate of levy is 3% of the price or value that is the basis for the calculation of the levy under clause 8.

10 Association must fix actual rate of levy

The association must fix the actual rate of levy for the first levy year in accordance with its rules.

The association must fix the actual rate of levy for each later levy year-

  • at an annual general meeting; or
  • at a special general meeting called for that purpose.

11 The organisation that the levy is paid to is:

The New Zealand Feijoa Growers Association Inc

PO Box 29045,

Ngaio,

Wellington. Telephone

Email feijoa@itm.org.nz

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12 The levy payers

Commercial growers of feijoas are primarily responsible for paying the levy.

The levy is paid to the Association by collection agents.

A collection agent is someone who buys feijoas from a grower, or sells or exports feijoas on a grower's behalf, and under the levy order they will

  • have to pay the levy on the feijoas they buy or sell on behalf; and
  • be able to recover the levy from the grower by taking it off growers' payouts.

A collection agent may deduct from the levy collected, a collection fee of not more than 10% of the amount of levy.

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13 Basis of The Levy

The amount of levy payable is calculated as follows:

  1. For feijoas sold by, or on behalf of, the grower in New Zealand, as a percentage of the price of the feijoas at the first point of sale.
  2. For feijoas that are processed by the grower, as a percentage of the value of the unprocessed fruit which will be set by the association at its annual general meeting in the current levy year.
  3. For feijoas that are exported, as a percentage of the FOB value of the feijoas (excluding GST).

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14 The rate the levy is set at

There is one rate of levy set for all feijoas. The maximum rate at which the Association is able to set this commodity levy is 3% of the price, as described above. The Association must fix the actual rate of levy at its annual general meeting or at a special general meeting which is called for that purpose. If a rate is not fixed in any year, then the rate previously set will remain.

15 Notification of the rate of the levy

As soon as practicable after setting the rate ofthe levy the Association will give notice of the rate in the Orchardist and in the industry newsletter to all potential levy payers known to the Association.

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16 Having input on how the money is spent

Each year at its Annual General Meeting, the Association will present its accounts for the past year, and a budget for the next. Growers will be able to discuss expenditure of the levy at this meeting, and any special meetings which may be called from time to time as necessary, according to the rules of the Association.

17 What the levy can be spent on

The general purposes for which the Association may spend the levy collected are:

  • product research and development ,
  • market research and development,
  • promotion of feijoas,
  • quality assurance ,
  • education ,
  • day to day administration of the Association.

The levy will not be spent on commercial or trading activity. The Association will spend all levy money paid to it, or invest it pending its expenditure.

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18 Conscientious Objectors

Any grower who objects on conscientious or religious grounds to paying the levy in the manner provided for by this levy, is able to pay the amount concerned to the Chief Executive of the Ministry of Agriculture and Forestry, and in such cases the Chief Executive will pay it to the Association.

19 Payment of the Levy

The due day for the payment of the levy is

  • for feijoas sold by a grower in New Zealand, the date of sale by the grower:
  • for feijoas processed by a grower, the date on which the feijoas are processed:
  • for feijoas exported by a grower, the earlier of when the grower sells the feijoas, or when they are loaded onto an international carrier for export:

Levy monies must be paid to the association no later than the 20th day of the next month.

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20 The information on growers that is collected

When collecting the commodity levy, some commercially sensitive information is collected. The Association will not divulge any of this information unless required to do so by law.

This will not affect, or prevent the Association from:

  1. using or disclosing such information for statistical and research purposes, but in a form which does not identify any individuals, or
  2. assisting in the invoicing and collection of commodity levies
  3. the production of records or accounts under section 17(1) of the Commodity Levies Act 1990 (which relates to the rights of the Minister to have accounts audited), or
  4. the giving of evidence in any legal proceedings taken in relation to the feijoa commodity levy,
  5. using such information to determine the voting entitlements, and to count the votes, of members of the Association.

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21 Information Retention

Feijoa growers have to keep for at least two years after the date of payment of the levy to the Association, the following information for each levy year:

  1. the amount of levy paid to the association and the date of payment;
  2. the quantity of feijoas sold, processed, or exported by the commercial grower
  3. the name and contact details of every collection agent and exporter to whom feijoas are sold and the price paid.

The Collection Agents shall keep and retain for at least two years after the date of payment of the levy by them, the following information for each levy year:

  1. the amount of levy paid to the association and the date of payment;
  2. the quantity of feijoas purchased from a commercial grower and the price paid;
  3. the quantity of feijoas sold or exported by the collection agent on behalf of a commercial grower;
  4. the name and contact details of every commercial grower referred to in paragraph (b).

The Association shall keep and retain for at least two years after the date of payment of the levy by them, the following information for each levy year:

  1. the amount of the levy money paid to it in that year and, in relation to each amount
  2. the day on which it was received;
  3. the person who paid it;
  4. how (if at all) the levy money paid to it was invested; and
  5. how and when all the levy money spent by it in that year was spent.

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22 Further Information

For further information, please contact The New Zealand Feijoa Association

The New Zealand Feijoa Growers Association Inc

PO Box 29045,

Ngaio,

Wellington. Telephone

Email feijoa@itm.org.nz

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