According to theaustralian.com, tensions are running high between Australian and Italian tomato growers, with Australian farmers furious that subsidised Italian tinned tomatoes are pushing down the prices paid to Australian growers. At the same time, the Italian government has mounted a fierce campaign to deflect likely 2016 increases in import taxes on its canned tomatoes flooding into Australia.
The messy war over tinned tomatoes is threatening the viability of Goulburn Valley farmers and major fruit processor SPC and could jeopardise imminent trade talks between Europe and Australia.
SPC Ardmona is preparing to switch on its new $30 million hi-tech canned tomato processing plant in Shepparton in late January ahead of a bumper summer harvest. While Italy is deeply worried a looming January finding by Australian authorities that subsidised processed tomatoes from two big Italian food companies have been “dumped” illegally in Australia at cheap prices, could have grave repercussions worldwide for its $2.2 billon biggest food export.
Italy’s Deputy Minister for Economic Development, Carlo Calenda, recently warned the Australian government of a “harsh reaction” to any jump in processed tomato tariffs, including blocking or disrupting the start of long-awaited free-trade negotiations between Australia and the European Union.
The Australian processed tomato market is worth more than $200m annually; with 50,000 tonnes of tins or half of all production sold in major supermarkets, such as Coles, Woolworths and IGA.
Five years ago SPC had a dominant 46 per cent share; now half the market is captured by Italy’s two biggest canned tomato exporters, Feger and La Doria, whose cans sell for just 80c in Australian supermarkets compared with $1.20 for Australian-grown SPC Ardmona brands.
SPC chief executive Reg Weine says it is vital to restore a level playing field and for the government to heavily penalise unfairly subsidised Italian imports, which would make them up to 7 per cent more expensive.
Canned tomatoes sold by both Feger and La Doria were found in a preliminary September report by Australia’s Anti-Dumping Commission to have engaged in unfair dumping practices.
