Zespri’s China project questioned

Zespri’s proposal to buy and market counterfeit golden kiwifruit grown in China has been met with trepidation within the industry, but a growers group says it might ‘‘stop the flow’’ of illicit fruit.

The kiwifruit giant has signed the beginnings of a commercial deal with a state-owned Chinese firm, in a bid to capture 4000 hectares of unlicensed SunGold kiwifruit being grown in China that threatens the company’s stake in the market. The deal would have Zespri buy and market the counterfeit fruit, and the Chinese Government would help the company enforce its rights over SunGold or G3 – an arrangement touted as a ‘‘winwin’’.

NZ Kiwifruit Growers Incorporated (NZKGI) said: ‘‘Growers are, generally speaking, of the view that we need to do what we can to stop the flow [of counterfeit fruit], and if that means having this small-scale trial with China to see how that might work ... we need to test that.’’

NZKGI chief executive Nikki

Johnson said: ‘‘None of this is perfect and growers totally understand that.’’

NZKGI would hear directly from growers about the project this week, Johnson said. She had heard some concern that Zespri would be handing information and technology for SunGold production over to Chinese firms but said, ‘‘whether that is a greater risk in China than it is in other markets, I am just not sure’’.

Kiwifruit grower and Tauranga-based lawyer Marcus Wilkins said growers should be demanding more advice about Zespri’s China project, and a broader investigation was needed.

‘‘There should be a thorough, independent, investigation into how this has arisen and whether the actions that are proposed are actually going to protect the taxpayers’ investment in this variety.’’

Wilkins said there might be a ‘‘rationale’’ to attempting to buy the counterfeit fruit. However, Zespri should be taking more steps to enforce intellectual property rights in China’s courts.

Michael Franks, chief executive of fruit grower and supplier Seeka, said Zespri had not yet made clear its plan, and it would struggle to enforce its plant variety rights (PVR) in China.

‘‘The land that the G3 is grafted on to is owned by the provincial governments . . . What is the motivation for them to give PVR protection when they have probably facilitated its expansion?’’

Franks said the success of SunGold relied on its post-harvest intellectual property, including the colour and temperature management. But the counterfeit fruit was going to look like Zespri.

‘‘It’s going to be in a box that is remarkably like Zespri and so it’s not ideal, and it will be sold at a fraction [of the cost].’’