Why Does Horticulture Executive Services Exist?

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 :

Economies of scale: To employ specialists in areas of need, rather than just generalists across the sector.
Succession planning: Most product groups are reliant on one to two staff members. When these people move on, it leaves a big void in knowledge.
Changing environment: The required activities and scope of product groups is increasing, with in many cases reduced or static levies.
Plugging the gaps: As the job list gets longer, certain activities slip through the cracks or are thought to be covered by other organisations. By aggregating resourcing, we can best service growers.

HESL was created in response to these challenges.

Business Operations

How does it work?

There are two options for contracting services:

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.

There are two options for contracting services:

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.

HESL Governance arrangements

There are two options for contracting services:

HESL Governance arrangements

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.

Why Does Horticulture Executive Services Exist?

Business Operations

How does it work?

There are two options for contracting services:

There are two options for contracting services:

There are two options for contracting services:

There are two options for contracting services:

There are two options for contracting services:

HESL Governance arrangements

There are two options for contracting services:

HESL Governance arrangements

1. Provide administration back-end support for product groups.

2. Manage compliance and health and safety requirements.

3. Standardise procedures.

4. Provide scale and task specialisation.

5. Reduce duplication.

6. Address gaps in task allocation.

7. Build a knowledge base for each product group, reducing exposure to knowledge loss with staff

8. Offers an affordable option for smaller grower groups.

9. Maintains product groups own Governance and direction.

10. Gives Government a central place to engage with smaller stakeholder groups.

Why Does Horticulture Executive Services Exist?

Business Operations

How does it work?

There are two options for contracting services:

There are two options for contracting services:

There are two options for contracting services:

There are two options for contracting services:

There are two options for contracting services:

HESL Governance arrangements

There are two options for contracting services:

HESL Governance arrangements

1. Provide administration back-end support for product groups.

2. Manage compliance and health and safety requirements.

3. Standardise procedures.

4. Provide scale and task specialisation.

5. Reduce duplication.

6. Address gaps in task allocation.

7. Build a knowledge base for each product group, reducing exposure to knowledge loss with staff

8. Offers an affordable option for smaller grower groups.

9. Maintains product groups own Governance and direction.

10. Gives Government a central place to engage with smaller stakeholder groups.

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