China uses NZ for backdoor food entry to Oz

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ScreenHunter_1369 Feb. 21 13.19

By Leith van Onselen

Interest.co.nz has published a disturbing report today on how China is using New Zealand as a back door to export potentially hazardous frozen foods into Australia:

While a great deal is being said about how seriously China takes the safety of imported foodstuffs (vis a vis Fonterra’s woes) it pays scant attention to what it ships around the world.

The issue of Chinese vegetables getting around Australian regulations by coming through New Zealand has been around for a year or so but it seems nothing is being done to police or change it.

It works like this: Vegetables from China are sent to New Zealand where they are mixed with big name brands and sent on to Australia where they are sold to the unsuspecting consumer.

This is made possible by a loophole in our trade agreements with Australia and also that country’s unwillingness to adopt country of origin labeling. While it is not mandatory here either most companies at least pay homage to it…

Australian consumer advocate AUSBUY told interest.co.nz the practice was rife and there was nothing that could be done to stop it.

Lynne Wilkinson said any food product sourced from overseas did not have to be labeled as to where it was from…

Not only are the vegetables being sourced from China they are avoiding chemical residue testing by coming through the back door…

The worst chemical found was procymide in a winter vegetable product made in New Zealand from “local and imported products”…

“Pesticide residues in imported produce is a significant issue [in Australia] as there’s basically no gatekeeper”.

Stories like this makes my blood boil. With Australia’s lax country-of-origin labeling laws, combined with inadequate testing, we have no way of knowing where our food is sourced from or that it is safe.

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Not having to comply with strict standards also gives China’s food exporters a cost advantage over local producers, like SPC Ardmona, and is a key reason why they are being driven out of business.

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About the author
Leith van Onselen is Chief Economist at the MB Fund and MB Super. He is also a co-founder of MacroBusiness. Leith has previously worked at the Australian Treasury, Victorian Treasury and Goldman Sachs.