New Zealand's largest kiwifruit grower Seeka (NZX: SEK) has joined the class action lawsuit called 'The Kiwifruit Claim' against the Ministry for Primary Industries (MPI), saying 'the justice system exists for this purpose'.

Growers are seeking up to NZ$885 million (US$694 million) in damages from the former Biosecurity NZ - now part of MPI - alleging it is liable for allowing the vine disease Psa to enter the country. 

In a release, Seeka said it had so far not commented on the issue as it wanted to listen to the debate and take time to consider its position.

The company says its losses from the 2010 Psa disease are 'conservatively estimated' to exceed NZ$45 million (US$35 million), and it had cut permanent staff numbers by 40% in preparation for worst case scenarios.

"Many growers have incurred significant financial losses in addition to emotional and psychological stress," Seeka chief executive Michael Franks said in a release.

"Throughout this time Seeka has offered help and support to its growers when they, along with the rest of the Industry, were facing complete uncertainty as to their future livelihoods."

Last week, the national growers' association NZKGI and Zespri both voiced their opposition to the claim, saying it could ruin the industry's positive relationship with the government with unforseen financial risks.

The Kiwifruit Claim chairman John Cameron told www.freshfruitportal.com these concerns were unfounded and there needed to be accountability for allowing such a devastating disease into the country.

Franks said the right place for the issue to be considered was in the courts rather than 'under the vines'.

"It should be litigated and judged by those appropriate to determine such matters," he said.

"Our justice system exists for that purpose. Seeka has seen the legal opinions both for and against and offers no opinion on their merits other than to say, in our opinion; there is merit in having them tested.

"Seeka respects the rights of every grower to make their own decision in relation to this matter and offers no guidance to any grower."

Growers representing around 20% of gold kiwifruit production have already signed up to the claim, along with 15% green kiwifruit growers.

The Kiwifruit Claim is due to hold an open meeting this Wednesday in the town of Te Puke with the group's legal team so growers can bring up any concerns in person.

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www.freshfruitportal.com