The New Zealand vegetable sector is assessing a proposal to consolidate its industry good organisations into a single entity, provisionally called VegeCo. The plan, outlined in a business case funded by five product groups—Onions New Zealand, Potatoes New Zealand, Process Vegetables New Zealand, Tomatoes New Zealand, and Vegetables New Zealand—seeks to address structural and operational challenges while ensuring crop-specific needs are maintained.
© Potatoes NZ
Currently, members invest about US$5.9 million (NZ$5.5m) in levies across the five groups, with total income of approximately US$8.3 million (NZ$7.7m) once grants and membership fees are included. Fifteen staff report to 35 directors across the groups. Boards and growers have questioned whether this fragmented structure is sustainable, given increasing costs, duplication of efforts, and gaps emerging in pan-sector priorities such as biosecurity, environmental research, and trade.
The business case highlights two phases of change. In the first phase, a new incorporated society would be established with a CEO and a board to oversee pan-sector activities. Staff would transfer to the new entity, while crop-specific managers and levies would remain in place, with a portion allocated to common activities. Separate financial reporting would be maintained initially.
The second phase would involve disestablishing the current product groups as legal entities, transferring commodity, biosecurity, and marketing levies directly to VegeCo. Crop Advisory Groups would be created to ensure accountability on crop-specific issues, while pan-sector priorities such as government relations, sustainability, and research would be addressed at the consolidated level.
Proponents argue that the model would reduce duplication, streamline corporate services, and allow larger projects to be commissioned. A unified voice is expected to improve influence with the government and HortNZ, while consolidation would enable recruitment of technical specialists in biosecurity, market access, and trade.
Risks include slower responses to crop-specific needs and potential competing priorities across the sector. The business case notes that accountability will be protected through crop-specific managers and advisory groups.
The proposal follows workshops, surveys, and interviews with growers in 2023–24. If supported, a formal vote may be held by the end of 2025, with product groups able to opt in or remain independent. A transitional board would be established to appoint a CEO and oversee implementation.
Growers are being consulted on the business case, which positions consolidation as a way to futureproof the sector against rising costs, succession risks, and government policy changes, while maintaining strong links with HortNZ on horticulture-wide issues.
To view the full report, click here.
© Potatoes NZFor more information:
Potatoes New Zealand
Tel: +64 (0) 800 399 674
Email: [email protected]
www.potatoesnz.co.nz
