Pistachio growers take aim at HIA over levy arrangement

According to the Pistachio Growers’ Association (PGA) for more than 20 years, pistachio R&D was financed by the voluntary contributions of almost all pistachio growers matched with government funds through the previous horticulture research and development bodies, as well as by HIA in its early days of operation.

PGA president, Chris Lee, said that in October 2015, HIA reversed its traditional policy that was enshrined in the Statutory Funding Agreement (between the Department of Agriculture and Water Resources and HIA) and required the pistachio industry to enter a “complex and onerous legal arrangement”.

“This incurs for pistachio growers increased commitment of resources for administration as well as additional governance that will cost a minimum of $4000 of growers’ limited funds per annum,” Mr Lee said.

“It also introduces inflexibility into the research requirements. It has taken 12 months of drafting, redrafting, legal inputs and long discussion to finally reach an agreement.”

In response however, HIA chief executive officer, John Lloyd, said the organisation welcomed the Collective Industry Fund agreement with the PGA but said HIA was not apologetic for having robust governance requirements in place that reflect community standards.

”Through the establishment of the Collective Industry Fund, pistachio growers have elected to unite in a way that allows the industry to access the Research and Development Corporate model – on the same basis as all other levy paying growers,” Mr Lloyd said.  

“This Collective Industry Fund offers industries the opportunity to undertake an R&D program in a similar manner to a Statutory Levy within the Australian Government’s system of R&D Corporations.

“The fundamentals of all Collective Industry Funds and their legal frameworks are in line with the other 31 horticulture levy paying industries.

Chair of the Pistachio Research Committee, Chris Joyce, said after two years of temporary measures and uncertainty, the agreement will allow the pistachio industry to recommence a stable, ongoing research program. 

“With the final conclusion of this agreement, the committee will now be able to focus on actual research activities rather than administrative arrangements,” he said.

“Whilst the conclusion of this agreement may be good news for pistachio growers, many other small industries remain excluded from Australian government matched research funds because of the now onerous requirements of Horticulture Innovation.

“Previously these industries were able to obtain support under the old voluntary contribution arrangements. Hazelnuts are trying to comply but with great difficulty.

“Pecans have decided that the Horticulture Innovation requirements are too difficult and will 100 per cent finance its own research; similarly, walnuts are in the process of determining whether to comply with the new requirements or to 100pc finance their own research.”

Mr Joyce spoke about his views on the levy arrangement and HIA as an organisation during his address to the Pistachio Spring Symposium in Victoria in September. 

The Australian pistachio industry commenced in the 1980s with the release of an Australian variety bred by CSIRO.

There are now about 1000 hectares with a 2016 crop value of about $25 million.

The area is being expanded at about 15pc each year. 

Australia now grows more than 50pc of the total domestic demand for pistachios with this share growing with increased production.

Mr Joyce said the voluntary industry research fund is supported by more than 95pc of pistachio growers.

“The pistachio industry has largely operated its own research programs over the past decade,” he said.  

“This has provided solutions to some key problems encountered in growing a new crop in Australia.

“This research includes the world leading publication on determining the chill requirements for pistachios and how to mitigate inadequate chill in warm winters.

Mr Lee said the Pistachio Growers’ Association looks forward to moving on from what has been a most frustrating period and recommencing one of the most functional research models within HIA.