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Potatoes New Zealand seeks tariffs for Belgian and Dutch potatoes

Christian Fernsby ▼ | July 14, 2020
On 3rd July 2020 Potatoes NZ submitted an application to Ministry of Business, Innovation and Employment for anti-dumping duties on frozen potato products originating in Belgium and the Netherlands.
Surplus   Potatoes
The application is based on the real threat of material injury to the New Zealand potato industry.

Topics: Potatoes New Zealand

The threat is a result of huge surplus inventories of frozen potato products and processing potatoes in Belgium and the Netherlands.

This situation has arisen through the impacts of the Covid-19 global pandemic causing supply chain disruption in hospitality industries worldwide.

The surpluses combined with the support the European industries are receiving from their governments, will drive export prices down further, increasing dumping margins and the threat to the New Zealand industry.

According to PNZ analysis, dumping margins are currently anywhere between 95% to 151%. We expect these margins to increase. This will lead to price undercutting for the NZ industry of between 18% and 38%. The damage this will cause will destroy the NZ industry.

Given that Potatoes NZ has shown in the application to MBIE, that dumping exists and huge surplus inventories of frozen potato products exist; it is clear that the threat is real and an investigation into anti-dumping duties is warranted.

A separate Potatoes New Zealand commissioned Economic and Community Impact Report from Business and Economic Interest Limited (BERL), concludes that in the absence of a duty, potato processors would be forced to cut production and demand for potatoes from NZ growers would drop.

nevitably, this would lead to a loss of employment and a threat to the viability of some potato growing businesses. The imposition of an anti-dumping duty on dumped imports of frozen potato products, would help to maintain demand for New Zealand grown potatoes, and ensure the continuity of employment and business in the growing sector.

A duty would mean that the potato growers would experience the same market conditions, including competition between themselves and fluctuations in market prices, as they did before the dumping occurred.