Aust, dumping duties hit N.Z. frozen peas

Press, 26 January 1988, Page 16

Aust, dumping duties hit N.Z. frozen peas

PA Nelson Anti-dumping duties are being slapped on New Zealand frozen peas by the Australian Government.

A local peas exporter, Talleys refused to comment on the move.

The managing director of consumer foods for Goodman Fielder Wattie, Mr Richard Jeffrey, said the growth of Tasman trade in consumer branded products was at risk.

The company did not accept the dumping charge. “We have always been responsible competitors in a competitive market,” Mr Jeffrey said. Although the decision would have little impact on the group’s profitabil-

ity, he said, it set a precedent requiring urgent attention from the Government because of C.E.R. implications. Claims of dumping were made late in 1985, and an initial investigation was made in 1986. Preliminary charges were' levied against exporters if they sold below a specified price level. The whole investigation was completed only recently and the anti-dump-ing levies announced on January 6, to be backdated to September 6 last year.

In the last two years the Australian moves had created much uncertainty for New Zealand exporters, said Mr Peter Silcock, the Vegetable' and Potato Growers’ Federation’s

executive officer. In 1985 Watties were making a big push into the Australian market which was stalled by moves by the Australian Government.

Exporters have been forced to find other markets for the 10 to 15 per cent of production which had been sent to Australia.

Some exporters cut pea production 25 to 30 per cent, and cut their prices to growers. Since the dumping charges began, a lower volume of peas had been exported to Australia.

,Mr Silcock said the ironic twist was the Australians were now short of peas, and were buying from Britain.

Last year Australian

pea growers were paid a 30 per cent increase to encourage more production to meet the shortfall there, he said. “It is difficult for me to see how we have caused harm to them when we see things like that happening,” he said.

The Minister of Trade and Industry, Mr Caygiil, has helped to put pressure on the Australian Government which is now reviewing the problem.

The Australian customs service will assess the normal values of the peas sold on the local market here, and make sure the prices are not lower for New Zealand peas on the Australian markets. “We can only be hopeful about the outcome,” Mr Silcock said.