SPC Admona wins anti-dumping tomato battle
In its Statement of Essential Facts (SEF) the Australian Anti-Dumping Commission (ADC) found that the exporters were dumping product after SPC made a complaint in 2013.
Dumping is when a company sells goods in Australia for prices lower than in a domestic market.
Coca-Cola Amatil’s SPC brand had previously lodged complaint regarding dumping of tinned Italian tomatoes into Australia where the Anti-Dumping Commission found that 103 out of 105 exporters were dumping.
The remaining two exporters were the subjects of the most recent complaint by SPC and it is now recommended by the commission that the companies are issued dumping duty notices.
It is recommended that one exporter, Ferger di Gerardo Ferraioli A.p.A, receive a dumping margin of 7.5 per cent and that the other, La Doria S.p.A receive a margin of 5.1 per cent.
Decision critical for Australian food processing sector – SPC
SPC’s Managing Director, Ray Weine welcomed the findings on behalf of the company.
“This decision is critical, not just for SPC but for Australia’s manufacturing industry and food processing sector,” Weine said.
“The future of Australia’s food processing sector, horticulture industry and the livelihood of Australian farmers is being undermined as more and more cheap imports flood the market and find their way onto supermarket shelves.”
“We need a level playing field to succeed, and today’s statement gives me confidence that SPC can continue to produce the quality clean, green Australian products that our consumers love and we are famous for,” he said.
“In its SEF, the ADC has acknowledged the impact EU subsidies are having on Italian canned tomato prices. Since 2010, the illegal dumping of tomato products has resulted in material damage to SPC including reduced margins and declining profitability. SPC has struggled to compete on price with these heavily subsidised dumped Italian tomatoes.”
“It is pleasing to see that the ADC has made a decision that supports regional industry and jobs. The Australian government now has the time to consider this report and make a final decision. I trust that as they do this, they will also put the appropriate measures in place to ensure duties are uniformly applied,” Weine said.
AUSVEG welcomes findings
AUSVEG, the industry body who represents Australian vegetable growers has welcomed the findings.
“In previous investigations into canned tomatoes, 103 of 105 canned tomato exporters from Italy were found to be illegally dumping their goods on our shores and duties were imposed. It is positive news that the Anti-Dumping Commission has recommended duties be imposed on the remaining two exporters,” said Andrew White, Deputy CEO at AUSVEG.
“We are hopeful that this recommended action will send a further message to foreign businesses exporting to Australia that they cannot simply dump their cheap produce on our shores and hurt the local industry in the process,” White said.
“The effects of this illegal dumping can reach far beyond the tomato industry. If left unchecked, they could set unwanted precedents for international companies exporting to Australia that could have flow-on consequences for the Australian vegetable and potato industries.”
Further information on dumping
According to the Anti-Dumping Commission, ”Dumping occurs when an exporter sells goods to Australia at a price that is below the ‘normal value’ of the goods. The normal value will usually be the domestic price of the goods in the country of export. The margin of dumping is the amount by which that normal value exceeds the ‘export price’ of the goods. Dumping is not prohibited under international trade agreements and it is not illegal.”