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How much will the levy be?

The maximum rate of levy will be 1% ($1 per $100) of:
i) The gross sales value (before deduction of costs and charges) at the first point of sale for all potatoes sold.
ii) The notional process value for growers who process their own potatoes.
The rate for the initial levy year will be 0.85% (85 cents per $100). The rates are GST exclusive.

Levy Expenditure

It is proposed that the levies will be spent by PNZ on the following purposes relating to potatoes or potato growers:

  • Research, Development & Extension;
  • Market Development & Promotion;
  • Development of Quality Assurance;
  • Education and Training;
  • Information and Communication;
  • Administration of Potatoes New Zealand;
  • Biosecurity Readiness and Response;
  • Grower Representation.

Changes to Commodity Levy Order

Calculation of levy for exported potatoes – Previously the levy for exported potatoes was based on a percentage of the Free on Board (FOB) sales value before deduction of costs and charges. It is proposed that the new Levy Order will calculate the levy on exports in the same manner as those calculated for all other sales – as a percentage of gross value (before deduction of costs and charges) at the first point of sale. This means that there will be parity, with all sales of potatoes calculating levy on the same basis.
Additional purpose for spending of the Levy – Biosecurity readiness and response have been included as possible uses for the Levy.

Key dates:
24 April 2018 voting opens
25 May 2018 votingcloses 12:00 noon

Voting eligibility
To be eligible to vote in the Potatoes New Zealand Inc., Levy Referendum your business must have paid a potatoes commodity levy for the 12 months to 31 March 2018.

Who is entitled to vote?
All active commercial potato growers are entitled to vote. Active commercial potato growers are those persons or businesses that are actively engaged in the commercial production of potatoes.

Voting methods
You may vote in ONE of two ways: INTERNET VOTE or POSTAL VOTE.

Voting papers
Information and voting papers will be sent out on 23 April 2018.

Voting assistance
Please phone the election helpline: 0800 666 028.
If you have any queries and/or feedback please email to info@potatoesnz.co.nz or phone 0800 399 674.