Wattie’s New Zealand is further reducing fruit and vegetable crops it sources from its home of Hawke’s Bay, citing an ongoing struggle against cheaper imports.
Growers of key crops of beetroot, corn and tomatoes will be affected by its recent crop intake review.
Just last month, Wattie’s announced it would reduce production of its canned peaches.
A spokesperson for the brand, owned by food giant Kraft-Heinz of the United States, said it carried out these reviews each year to respond to market demand, increased competition from imported goods and rising input costs.
“In recent years, Wattie’s has seen a reduction in demand for home-grown canned fruit products and has not been able to recover to the levels it saw prior to the cyclone,” she said.
“Our desire, of course, is for Kiwis to return to the Wattie’s locally grown favourites, but until such time as we see an increase in demand, we are forced to adjust our intake, which has impacted crops such as peaches, beetroot, tomatoes and corn.”
She said it contacted affected growers directly, many of them had been partners for years.
“We recognise this is a difficult time for them and their businesses and are committed to helping them through this transition phase.”
The decision to reduce peach production garnered upset among New Zealand consumers online.
However, the company had already warned the government that alleged dumping of cheaper imports from countries like China into the New Zealand market would affect local production.
A spokesperson for the Ministry of Business, Innovation and Employment confirmed it was investigating these claims after Heinz Wattie’s filed an application in July into alleged product dumping.
“MBIE is currently progressing step 1 of the [trade remedy] investigation in accordance with its standard process, with input from participating stakeholders,” it said.
It was working to compile preliminary findings, essential facts and conclusions report for the applicant by November 7.
And the findings would be presented to the Minister for Commerce and Consumer Affairs for decision, by January 31.
“MBIE is also considering a request from [Heinz Watties] for provisional measures during the course of the investigation, in line with statutory provisions.”
It followed an earlier investigation several years prior.
Anti-dumping duties on preserved peaches from China were lifted in 2017.
Newsroom reported that Stats NZ data included in the Heinz application showed Chinese peach import volumes increased from 300,000kg a quarter in 2018, to a peak of just below 831,000kg in the final quarter of 2024.
By Monique Steele for rnz.co.nz
