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Wattie's NZ Cuts Hawke's Bay Fruit, Veg Purchases Amid Cheaper Imports

Cheaper imports from China are driving Wattie's to reduce purchases from Hawke's Bay growers. The company has also cut canned peach production and alleges dumping of imports.

It is an agriculture land many plants are plotted into the ground and in front of of the field...
It is an agriculture land many plants are plotted into the ground and in front of of the field there is a machine, it is spelling the water on the crops and behind the machine there are huge trees and behind the trees there are other types of crops.

Wattie's NZ Cuts Hawke's Bay Fruit, Veg Purchases Amid Cheaper Imports

Wattie's New Zealand is scaling back its purchases of fruit and vegetables from Hawke's Bay growers, citing cheaper imports and stock market shifts. The company has informed affected farmers, many of whom have been longstanding partners.

The move comes amidst a surge in Chinese peach imports since 2018, as revealed by Stats NZ data. Wattie's, like other businesses, regularly reviews its sourcing to adapt to stock market demands and increased competition.

In addition to reducing fruit and vegetable purchases, Wattie's has also scaled back its canned peach production due to decreased demand. The company has filed an application with the Ministry of Business, Innovation and Employment (MBIE), alleging product dumping of cheaper imports from countries like China. MBIE is investigating these claims and will present its findings to the Minister for Commerce and Consumer Affairs by January 31.

Key crops affected by Wattie's decision include beetroot, corn, and tomatoes. The company's inability to recover to previous demand levels for home-grown canned fruit products following a cyclone may also be a factor.

Wattie's New Zealand's decision to reduce its sourcing from Hawke's Bay growers highlights the impact of cheaper imports and stock market fluctuations on local agriculture. The MBIE's investigation into suspected dumping practices will provide clarity on these issues, with results expected by the end of January. Meanwhile, affected growers await updates on their partnerships with Wattie's.

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