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News Corona crisis

Unorthodox French fries levy threatens in Australia

30 July 2020 - Redactie Boerenbusiness

Following in the footsteps of New Zealand, all signals in Australia are also on the red for the import of European potato products at dump prices. Imports from the Netherlands and Belgium in particular are followed closely in Oceania.

According to PotatoPro data, Australia produces an average of 1,3 million tons of potatoes per year, more than 60% of which is processed into frozen potato products and chips. Especially in Tasmania, the import of dirt-cheap potato products can have major consequences for the local industry.

Free trade highly valued
Australia is not used to a protectionist market and price policy, quite the contrary. Global unfettered free trade is a top priority in Australia and New Zealand. However, the corona crisis is an exceptional situation that may justify market intervention in the form of customs tariffs, for example, says Tyson Cattle, spokesperson for the Australian agricultural and horticultural organization AUSVEG.

No wholesalers
New Zealand and Australia are normally not major buyers of European chips. For Belgium, the largest French fries exporter worldwide, Australia and New Zealand are respectively in 27th and 71st place as export destinations. In New Zealand, normally 85% of French fries consumption comes from own production.

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