COLLECTIVE UNIFICATION
Since our last grower information update that was held on Thursday 31st October the 3 collectives have been unable to reach agreement/common ground on a couple of issues, mainly levy options and asset contribution which has currently delayed proceedings. Representatives from the combined collectives held a meeting last Thursday in an effort to establish whether there remained a commitment to the unification concept. This was reaffirmed during the meeting however directors came to the realisation that new unified entity structure is unlikely to be in place prior to the commencement of the 2020 season.
The board of KCGO has also previously expressed a strong desire for involvement of 3rd party consultant to overview the unification concept to ensure all aspects are addressed as well as to include recommendations of issues/options that may not have been fully addressed. Discussions have taken place with two organisations, with a quote provided based on initial scope of works. Consultancy quote is quite expensive and further discussions in the new year are required in order to negotiate reduction in price/scope of works.
At this point and with office closures for 2 weeks over the Xmas/New Year period a further combined collective grower meeting will not take place this year, with end of January or February to be a more likely scenario. Whilst acknowledging the initial timeline provided to members with “new entity” to be formed by 1 April 2020 in readiness for 2020 season, a greater emphasis is being placed more on “getting it right the first time” rather than meeting a time constraint/deadline.
There were a number of topics raised at last grower meeting including but not limited to, the cap/no cap methodology, request for a more detailed costing of budget expenses, delay in signing memorandum of agreement until full unification concept details have been put to growers to enable “poll” to be conducted. At the end of the day it is not KCGO board’s decision to proceed with unification, it will and always has been your board’s intention that ultimately it will be KCGO members who make the final decision.
Levy scenarios are to be updated given conclusion of season and a more accurate tonnage being available for forecasting budget etc. This will enable levy options to be re-evaluated. The idea is to provide three options – cap, no cap, as well as a no cap tiered levy structure for small/larger growers in an effort to encourage all growers to be a part of this journey of a unified entity.
KCGO intends to hold a grower meeting towards the end of January to provide summary of what has been previously raised at grower information sessions for those who were unable to attend during the season, as well as seeking feedback on various issues eg. but limited to:
• levy options,
• asset/capital contributions,
• third party consultant
• additional services members consider of importance in a new entity eg. increased focus on advocacy
If you have any further questions or queries please do not hesitate to contact me.
Les Elphinstone
Manager KCGO