Wattie's New Zealand, owned by U.S.Wattie's, cuts New Zealand crop sourcing over import competition-based Kraft Heinz, and is further reducing its sourcing of fruit and vegetable crops from Hawke's Bay due to ongoing competition from cheaper imports. The company confirmed that growers of beetroot, corn, and tomatoes will be affected following a recent crop intake review. The move follows a similar reduction in canned peach production announced last month.
A Wattie's spokesperson said the company conducts annual reviews to adjust operations in response to market demand, imported product competition, and increasing production 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 before the cyclone," the spokesperson said. "Our desire, of course, is for Kiwis to return to the Wattie's locally grown favourites, but until we see an increase in demand, we are forced to adjust our intake, which has impacted crops such as peaches, beetroot, tomatoes, and corn."
The company said it had informed affected growers directly, many of whom have worked with Wattie's for several years. "We recognise this is a difficult time for them and their businesses and are committed to helping them through this transition phase," the spokesperson added.
The decision to reduce canned peach production drew public criticism, with consumers expressing concern over social media. Wattie's had previously warned the New Zealand government that the alleged dumping of cheaper imports from countries such as China was threatening domestic processing volumes.
The Ministry of Business, Innovation and Employment (MBIE) confirmed that it is investigating Heinz Wattie's complaint filed in July regarding potential product dumping. "MBIE is currently progressing step 1 of the [trade remedy] investigation in accordance with its standard process, with input from participating stakeholders," a ministry spokesperson said.
Preliminary findings, along with an essential facts and conclusions report, are expected by 7 November. The final report will be presented to the Minister for Commerce and Consumer Affairs by 31 January. MBIE is also considering Wattie's request for provisional measures during the investigation.
Anti-dumping duties on preserved peaches from China were previously lifted in 2017. According to data from Stats NZ cited in Wattie's application, imports of Chinese preserved peaches increased from 300,000 kilograms per quarter in 2018 to nearly 831,000 kilograms in the last quarter of 2024.
Source: RNZ
