Industry representatives in New Zealand's horticulture sector have raised concerns that proposed increases in plant variety rights (PVR) fees could reduce competitiveness in global fresh produce markets.
PVRs, administered by the Ministry of Business, Innovation and Employment (MBIE), grant plant breeders exclusive rights over the commercial propagation of new cultivars they have developed or imported. The rights are estimated to generate over NZ$3 billion (US$1.84 billion) in economic benefit annually.
Under the proposal, annual PVR protection fees could increase up to fourfold. When combined with current import health standard requirements, higher customs fees, and quarantine delays, stakeholders say the costs would place New Zealand among the most expensive countries for importing or developing protected crops.
Andy Warren, director of specialty importer Bloomz, said the fee hike would add to the cost of bringing in new cultivars. He noted that apple varieties can cost nearly NZ$150,000 (US$92,000), including quarantine costs, before PVR payments begin. "Breeders used to bring in multiple cultivars to see which would perform best, but this has simply become too expensive now," he said.
A BERL report commissioned by MBIE in 2023 found that doubling fees to recover full scheme costs could lead to a 50% decline in PVR applications. The report linked this to fewer imported cultivars, reduced grower profits, less genetic diversity, and a loss of international competitiveness.
Tony Hendrikse, general manager of Eurogrow, said annual PVR fees could rise from NZ$365 (US$224) to NZ$2,000 (US$1,230) per cultivar, pushing total protection period costs to over NZ$60,000 (US$36,900) from the current NZ$13,500 (US$8,300). "We simply won't be able to afford to bring in multiple varieties to trial – yet only one in 10 may be successful," he said.
Industry participants with global experience warned that, when combined with other costs, New Zealand would become the most expensive country in the world for importing new cultivars. A fruit variety importer also said that without new genetics, domestic breeding could become inbred over time. "For example, crossing Royal Braeburn and Gala, they all become pretty much the same eventually without new genetics introduced," he said.
Gaby Cowcill, manager of science patents and plant variety rights at the Intellectual Property Office NZ (IPONZ), confirmed a review of PVR fees is underway, but no decisions have been made. "Any fees update would require cabinet approval and public consultation," she said. Applications for PVRs vary annually, with 91 applications lodged in the 2024–25 financial year compared to 125 the previous year.
Source: Farmers Weekly
