The New Zealand horticulture sector is currently made up of 20 different product groups, and 24 grower district associations. This ensures that growers are well-represented and supported. However, because these organisations are small in size, the structure provides challenges in terms of :
HESL was created in response to these challenges.
Staff time is contracted out . Where the function is across more than one entity, that time will be apportioned between the product groups. For example, Biosecurity GIA attendance, would be split between funding product groups. If a new product group joins, the cost for shared activities is recalculated.
A service level agreement will be entered into up front, so both parties have a clear idea and expectation of what’s required.
Product groups can opt in for specific requirements/ needs. i.e., it could be for administrative support, business management, etc.
1. Shareholder: A product group may wish to take up a shareholding in HESL and receive at-cost price services where HESL has expertise. It is possible to sell the share in the future and receive equity back for that share, based on the value at the time. It is intended that HESL breaks even, rather than losing or accumulating reserves. We encourage product groups to take up a shareholding, primarily to share risk equitably between groups.
2. Non-shareholder: Product groups and district associations can use services without being a shareholder. The cost for non-shareholders will be slightly above cost-recovery prices.
Each shareholder is eligible to have one member representing them at the HESL Board table.
The role of the HESL Board is to manage operational requirements, such as health and safety, policies, manage risk and staffing requirements.
There is a constitution which sets out the procedures and rules for HESL.
HESL