ZESPRI International Limited says it is pleased about the creation of a new Productivity Commission, announced by the Minister of Finance and the Minister for Regulatory Reform today.

Chief Executive, Lain Jager, said productivity was a critical factor in improving the rate of economic growth in New Zealand and was the key factor driving the global success of the New Zealand kiwifruit industry.

"Productivity is the foundation to remaining competitive globally," said Mr Jager. "While cost reduction is important, the reality is that our global competitiveness will be driven by our rate of innovation and productivity improvement. New Zealand is never going to be the lowest cost producer of primary products, ultimately our global competitiveness will be driven by our ability to innovate and lift productivity faster than our competitors. That's why we see today's announcement as an effective and important step towards improved wealth for New Zealand producers and the economy overall."

"Productivity improvements have been fundamental to the continued viability of the New Zealand kiwifruit industry in the face of strong competition from Chile as a lower cost producer of kiwifruit. We have doubled export value and volumes over the last 10 years and we are expecting the same rate of growth for the next 10 years through investing in marketing and distribution - particularly in high growth markets, broadening our product portfolio through the introduction of great new products to earn new shelf space and delight consumers, and constant productivity improvement."