NZ kiwifruit giant vows to be 'humble' in China dealings

New Zealand kiwifruit exporter Zespri declared Thursday that it was committed to the China market, but it would be "respectful" following smuggling convictions against its Chinese mainland subsidiary and a worker there.

Zespri Chairman Peter McBride told more than 300 grower-shareholders at the Zespri annual meeting in the North Island city of Tauranga that the company's "customs issues" in China would have no impact on its future there.

China was forecast to be Zespri's largest market by 2018, McBride said in a statement after the meeting.

"We have to work through the historic customs issues in China in a deliberate and considered manner," said McBride.

"We cannot fast-track this process. We must be respectful of China's system and continue to cooperate with the relevant authorities in a humble and open manner until the matter is resolved."

McBride said New Zealand kiwifruit growers had a tremendous opportunity in a world of growing middle classes and demand for quality and safe food.

Zespri Chief Executive Officer Lain Jager said the company had identified a number of issues in China, which, in combination, meant its oversight of the actions of its former importer were not sufficiently robust.

"It is critical that the company learns from this experience and moves forward with respect to its operations and relationships in China and we will continue to keep growers updated with our progress," Jager said in the statement.

Last week a Shanghai court upheld smuggling charges against Zespri's Chinese subsidiary and one of its employees.

The subsidiary was fined 5 million yuan (813,299 U.S. dollars) and the worker sentenced to five years in prison after being convicted on charges related to under-reporting of import duties on kiwifruit entering China from 2008 to 2010.