The group that represents New Zealand's kiwifruit growers believes a negligence claim against the Ministry for Primary Industries (MPI) is unlikely to succeed and could expose participants to further financial strain.

A portion of the sector has signed up for 'The Kiwifruit Claim', which is seeking up to NZ$885 million (US$694 million) in damages from the former Biosecurity NZ, now a part of MPI, for not preventing the incursion of vine disease Psa.

New Zealand Kiwifruit Growers Inc said the claim threatened a positive relationship with the government that had helped ensure the industry's single point of entry (SPE) marketing system, the reduction of tariffs, and research and development.

"We are currently assessing all information and the due diligence will be completed next week and advised to growers. A key concern for NZKGI is ensuring growers are not exposed to large financial costs in the event the claim is unsuccessful," the association's vice president Doug Brown said in a release.

"We believe this claim may damage the kiwifruit industry's relationship with the New Zealand Government."

NZKGI has asked for a copy of the legal advice on which the claim is based to complete its assessment for growers.

"To date, this has not been provided. However, based on the information we currently have, we believe the claim is not likely to succeed and will take many years," Brown said.

In a statement, Zespri chairman Peter McBride said the claim lacked transparency, and that the profit made by the litigation funder reflected the high risk of the claim failing.

"The last thing this industry needs right now is for the focus to be taken from growing our industry, and placed on a divisive, drawn out, and hugely expensive legal battle, especially given the poor process followed by 'The Kiwifruit Claim' and the uncertain legal basis of the case," he said.

"Biosecurity is critical to our industry's success, and I believe the best way to strengthen this system is to learn from experience and to work in partnership with the government.

"Our industry structure is a privilege granted to us by Government and creates huge value to New Zealand kiwifruit growers. This action will compromise the industry's relationship with government."

McBride emphasized the immense damage Psa caused immense damage to businesses and people, including himself, but said the industry was "well into recovery from Psa" and firmly on a growth path.

"Orchard Gate Returns are strong and orchard land prices have not only recovered from the effects of Psa but are now higher than pre-Psa levels. Zespri is back on track to deliver on its plan to triple revenue to (NZ)$3 Billion (US$2.35 billion) by 2025, and will continue to make increasing grower returns its number one priority," he said.

"Ultimately it is not Zespri's place to tell growers whether they should sign up to this claim or not, that is entirely their decision.

"However growers at the very least deserve the people behind 'The Kiwifruit Claim' to be completely transparent about the risks – political, legal and financial – associated with this claim."

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