Mar 19 2024

Commodity Levy Proposal 2024





 Over the next few months, various vegetable product groups, including TomatoesNZ and HortNZ will be asking you to vote to renew the commodity levy funding that keeps these organisations going. We are required to undertake a referendum every six years to establish continued support for this funding mechanism.

In summary, we are proposing no significant changes to the individual levies that fund the organisations.

These are the kind of activities that levy funds go towards

  • Research, development and extension, to help you meet challenges through new growing techniques
  • Advocacy, in the key policy areas of land, water, emissions, crop protection, and labour – working closely with HortNZ – so the industry can thrive again, and New Zealanders can be confident of good food supply and security
  • Biosecurity: keep pests and diseases out, while being ready to act should they enter the country
  • Better export access, so the industry can continue to expand
  • Support in a crisis: advocacy in Wellington as well as practical advice
  • Promoting the increased consumption of vegetables.

What we need from you

We need your feedback! This is important to ensure that the work TomatoesNZ has done and proposes to do, meets your expectations. We also need to know if you agree with the proposed levy rates. You can feed this back directly to Dinah Cohen who can pass your questions and concerns on to the TomatoesNZ board. Email Dinah here.
Once we have heard your feedback, we can develop and send you the levy proposal which will include the proposed Commodity Levy rate, and we will then need your support by voting ‘yes’. Having the support of fresh tomato growers will enable our work to continue for the greater good of the industry. 


What's proposed?

TomatoesNZ proposes that there will be no change to the current Commodity Levy of 0.35%. This equates to 35c per $100 at the first point of sale for both domestic and export sales.

The maximum rate is 0.50% per $100 with the annual rate set every year as proposed by the board and with agreement by you, the members, at the AGM. 

The vote will be carried out on both a ‘one grower one vote’ and a ‘value of production’ weighted basis. Growers will be asked to state their value of fresh tomato production in the last 12 months. 

For the referendum to be successful, TNZ must receive a minimum ‘yes’ vote for over 50% of the total number of fresh tomato growers AND those growers who have voted, must representant more than half of the total value of the fresh tomato crop produced during the preceding 12 months. 

If the levy order is supported by growers, TomatoesNZ will apply to the Minister of Agriculture for a new Commodity Levy Order. If growers do not support the levy order, TomatoesNZ will have no secure funding beyond March 2025 and would not be able to continue to operate. 


The levy voting process

Tomato growers will need to cast at least 2 votes, one for TomatoesNZ and one for Horticulture NZ. The current fresh tomato Commodity Levy expires in 2025. You will be sent voting forms ahead of the voting period 14th May – 14th June 2024. You will be asked to vote whether you are for or against the proposed fresh tomato Commodity Levy. 

TomatoesNZ supports the wider policy, advocacy and extension work that HortNZ undertakes. We strive to ensure that the two organisations have complementary workstreams. 


Click here to view the Commodity levy brochure