New Zealand and Australia fear that cheap frozen chips from Europe will disrupt the internal market. Growers and processors in both countries are urging the government to impose import restrictions.
As a result of the corona crisis and the closure of the catering industry, sales of fries have stagnated. Major European potato-producing countries, including the Netherlands and Belgium, are struggling with a surplus of French fries potatoes. As a result, the cold stores are also full of frozen fries. Countries such as New Zealand and Australia are afraid that these products will come their way in abundance.
Normally, about 85% of New Zealand's chip consumption comes from domestic cultivation and processing. A large part is consumed outside the home. Due to the corona measures, the catering industry in New Zealand was closed for 2 months. As a result, sales of New Zealand chip potatoes and products have leveled off.
Extraordinary prices
The processing industry, united in Potatoes New Zealand, fears growing imports from large production centers where potato prices have collapsed. This mainly concerns the European Union, but also North America. "If urgent action is not taken to prevent this, New Zealand will be flooded with imports of frozen chips at extraordinary prices," Potatoes New Zealand predicts.
The organization reports that New Zealand chip factories have now built up a large stock and may even have to close temporarily. This has direct consequences for the contracts with growers in the country. Volumes are reduced and lower prices are agreed. The domestic market must first recover, says Potatoes New Zealand. 'Government intervention is necessary to prevent imports for a certain period.'
Anti-dumping
Australian potato growers (AUSVEG) urged the government last week for import restrictions. The organization is investigating this possibility through the anti-dumping committee, but fears that this will take too long to stop the supply of chips in time.
Australia's two largest potato processors, McCain Foods and Simplot, are aware of the threat. Growers are being contacted about the impact on contracts, Potato News Today reported. Growers have apparently been told that at least one European chip processor is setting up a distribution company in Australia.