AUSTRALIA – Australia’s largest grocery chains, Woolworths and Coles, are under investigation by the Anti-Dumping Commission following claims from domestic tomato producer SPC, who alleges that cheap Italian tomato imports are harming local farmers and threatening fair competition.
The Anti-Dumping Commission has launched an inquiry in response to allegations from SPC, a canned tomato producer, regarding the pricing of imported tomatoes from Italy.
According to SPC, these imports undercut the market, damaging their ability to compete. “SPC seeks to compete in the Australian market with fairly priced imports,” SPC said in a statement.
“We believe that Italian tomatoes are not being sold at fair prices, and this has caused significant financial harm to our operations.”
SPC contends that Italian imports, sold under Woolworths’ and Coles’ private labels, have pressured their revenue, profits, and market share.
The Australian-based producer, which markets its products under the Ardmona brand, sells a 400-gram can of tomatoes for A$2.10 (USD 1.40), while the same-sized Italian product sells for A$1.10 (USD 0.73). These price differences, SPC claims, have forced them into a precarious financial position.
A growing concern for local producers
The issue centers on the “dumping” of Italian canned tomatoes at subsidized prices. Dumping occurs when products are sold abroad at a price lower than in the home market, often harming local industries.
SPC attributes these imports to substantial market loss. They have urged the Anti-Dumping Commission to impose tariffs, hoping to “address dumped and subsidized exports and consequently return import prices to non-dumped and non-subsidized levels.”
SPC has supplied Coles and Woolworths with local canned tomatoes for years, but they argue that without trade measures, Italian imports will continue to disrupt their sales.
The Anti-Dumping Commission’s final report, expected by March next year, will determine if Woolworths and Coles must alter their import practices to protect local industry.
In response to SPC’s allegations, a Woolworths spokesperson emphasized their commitment to customer choice. “We have offered both Australian and Italian tinned tomatoes in our range for a number of years,” they said.
“Many customers prefer Italian-grown tomatoes for their authentic flavor in home-cooked Italian dishes.”
While the investigation continues, Woolworths and Coles remain able to source Italian tomatoes. The question at hand is whether they are obtaining these products at prices that unfairly damage Australian competition.
EU tomato trade disputes
This debate on tomato imports is not unique to Australia. In Europe, tomato growers have raised similar concerns over increased imports from non-EU countries, notably Morocco.
The European Union has witnessed a significant increase in Moroccan tomato imports, causing challenges for local farmers who struggle to match the lower prices.
Brexit has added further strain, with the UK’s withdrawal from the EU single market leading to additional paperwork for EU tomato shipments, creating a ripple effect in the tomato supply chain across Europe.
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