1 00:00:00,040 --> 00:00:02,720 Speaker 1: And so the peach dumping business and investigations found cheap 2 00:00:02,800 --> 00:00:05,560 Speaker 1: Chinese peaches have been done by this company, J and 3 00:00:05,640 --> 00:00:08,840 Speaker 1: G International, and it's caused material harms in New Zealand's industry. 4 00:00:08,840 --> 00:00:11,680 Speaker 1: So that's their finding. This first came to our attention 5 00:00:11,680 --> 00:00:13,600 Speaker 1: when what is of course, you remember last year stopped 6 00:00:13,640 --> 00:00:17,200 Speaker 1: buying local fruit from local growers. Now Paul Painter is 7 00:00:17,200 --> 00:00:20,080 Speaker 1: the Yummy Fruit Company general manager and he's with us 8 00:00:20,120 --> 00:00:21,760 Speaker 1: on this. Paul, very good morning to you. 9 00:00:22,440 --> 00:00:23,000 Speaker 2: Good morning. 10 00:00:23,200 --> 00:00:24,840 Speaker 1: Is this getting enough attention? 11 00:00:26,200 --> 00:00:28,800 Speaker 2: Well? Probably not. I mean I think that in general 12 00:00:28,920 --> 00:00:31,800 Speaker 2: we like to assume a wonderful world of free trade 13 00:00:32,200 --> 00:00:34,720 Speaker 2: and honest dealings, and that isn't the world we live in. 14 00:00:34,920 --> 00:00:37,120 Speaker 1: No, and when what he said or did what they 15 00:00:37,159 --> 00:00:39,159 Speaker 1: did last year, was that a major red flag that 16 00:00:39,159 --> 00:00:41,000 Speaker 1: people should have acted on more than they have. 17 00:00:41,240 --> 00:00:45,440 Speaker 2: Perhaps, Well, I think it reflects a whole lot of things. 18 00:00:45,440 --> 00:00:48,280 Speaker 2: Whaties have reduced quite a number of contracts, and that 19 00:00:48,400 --> 00:00:53,600 Speaker 2: reflects all sorts of dynamics here Sydney cyclone Gabrielle scared 20 00:00:53,640 --> 00:00:55,200 Speaker 2: them off and forced them to go and see the 21 00:00:55,320 --> 00:01:00,560 Speaker 2: supply elsewhere. New Zealand's unfortunately got relatively highlight levels of 22 00:01:00,800 --> 00:01:04,720 Speaker 2: land costs, labor costs, energy costs, and that's a big 23 00:01:04,800 --> 00:01:08,080 Speaker 2: color for Watties. They're huge gas users and that's back 24 00:01:08,120 --> 00:01:11,240 Speaker 2: in the news as well. And I know they've priced 25 00:01:11,280 --> 00:01:16,319 Speaker 2: up a biomass burner for energy, but you know, what's 26 00:01:16,319 --> 00:01:18,520 Speaker 2: that going to cost twenty million? I don't know. And 27 00:01:18,600 --> 00:01:21,680 Speaker 2: so they apparently haven't made any money since twenty twenty one. 28 00:01:22,200 --> 00:01:25,319 Speaker 2: So there's a whole lot of threats here and New 29 00:01:25,400 --> 00:01:27,600 Speaker 2: Zealand has to be a more business friendly environment. And 30 00:01:27,640 --> 00:01:30,360 Speaker 2: the obvious place that we've made a real mess of things, 31 00:01:30,360 --> 00:01:34,840 Speaker 2: it's energy. It's killing the some of the sawmills and 32 00:01:35,040 --> 00:01:38,319 Speaker 2: many other industrial businesses like it is in during Many 33 00:01:38,440 --> 00:01:41,120 Speaker 2: or the UK, and so gas supplies is at the 34 00:01:41,120 --> 00:01:42,120 Speaker 2: heart of that, isn't it. 35 00:01:42,120 --> 00:01:44,280 Speaker 1: Ironically we're talking about gas. We weren't going to talk 36 00:01:44,319 --> 00:01:46,399 Speaker 1: about guess, but we're now talking about gas. But your 37 00:01:46,440 --> 00:01:49,760 Speaker 1: example of Watties and they're pricing and the land use 38 00:01:49,800 --> 00:01:52,920 Speaker 1: and stuff, is that about cheaper product from offshore. So 39 00:01:52,960 --> 00:01:56,960 Speaker 1: that's a competition thing versus dumping, which is a separate thing, 40 00:01:57,000 --> 00:01:57,320 Speaker 1: isn't it. 41 00:01:58,200 --> 00:02:01,080 Speaker 2: Yeah? Absolutely, But I understand, and these products have been 42 00:02:01,120 --> 00:02:03,560 Speaker 2: sourced directly by the supermarkets and they're not going to 43 00:02:03,560 --> 00:02:06,040 Speaker 2: really ask too many questions. They're going to say to 44 00:02:06,120 --> 00:02:08,600 Speaker 2: their friends in China, what's it a deal with? Give 45 00:02:08,639 --> 00:02:11,200 Speaker 2: me on a can of peatures. But I think the 46 00:02:11,240 --> 00:02:13,320 Speaker 2: important thing for the New Zealand consumer to do is 47 00:02:13,360 --> 00:02:16,640 Speaker 2: be aware of the difference of quality and then go 48 00:02:16,720 --> 00:02:18,679 Speaker 2: out tomorrow by yourself a can of what IS and 49 00:02:18,720 --> 00:02:20,519 Speaker 2: a can of the Chinese stuff, and you eat them. 50 00:02:21,040 --> 00:02:23,120 Speaker 2: It's light and day. It really is? 51 00:02:23,120 --> 00:02:24,840 Speaker 1: Is it really? Because I was going to say the 52 00:02:24,840 --> 00:02:27,080 Speaker 1: problem with the consumer is the consumer's driven by a price, 53 00:02:27,160 --> 00:02:28,919 Speaker 1: right or wrong. That's how it works, isn't it? 54 00:02:29,800 --> 00:02:32,120 Speaker 2: Well? One of boring? So I went out and bought 55 00:02:32,160 --> 00:02:35,960 Speaker 2: the what is, the South African fruits and the Chinese fruit, 56 00:02:36,200 --> 00:02:39,560 Speaker 2: and the South African fruits kind of passable. Chinese fruits 57 00:02:39,600 --> 00:02:42,880 Speaker 2: pretty rubbishy, and the Wattes stuff is demonstrably the best. 58 00:02:42,919 --> 00:02:45,480 Speaker 2: It's no doubt about that. But there's no doubt there's 59 00:02:45,520 --> 00:02:49,320 Speaker 2: a living costs pressure and people looking for a chip option. 60 00:02:49,440 --> 00:02:52,359 Speaker 1: Yeah exactly. But coming back to this investigation, So when 61 00:02:52,360 --> 00:02:54,760 Speaker 1: what Is did what they did last year, the investigation 62 00:02:54,919 --> 00:02:58,680 Speaker 1: was launched, dumping was found and material harm to New 63 00:02:58,800 --> 00:03:00,480 Speaker 1: Zealand's industry was also so found. 64 00:03:00,840 --> 00:03:07,240 Speaker 2: What happens then, well, they make a finding, they propose 65 00:03:08,560 --> 00:03:11,799 Speaker 2: some sort of duty to right the wrongs, and then 66 00:03:11,840 --> 00:03:14,360 Speaker 2: they review their findings and I suppose they'll get a 67 00:03:14,360 --> 00:03:16,360 Speaker 2: couple of comments and the Chinese get a bit scared 68 00:03:16,360 --> 00:03:19,480 Speaker 2: and pontificate for a while. So these things take an 69 00:03:19,480 --> 00:03:22,640 Speaker 2: awfully long period of time, at which time the damage 70 00:03:22,680 --> 00:03:27,000 Speaker 2: has basically already been done. And there's people now who've 71 00:03:27,000 --> 00:03:29,040 Speaker 2: already pulled out their features that are planning to do 72 00:03:29,120 --> 00:03:31,640 Speaker 2: so this coming winter. And so you know, it's not 73 00:03:31,760 --> 00:03:34,600 Speaker 2: like you can instantly right that wrong with the past. 74 00:03:34,600 --> 00:03:40,000 Speaker 2: It's done its damage. Impredatory pricing is well demonstrated around 75 00:03:40,000 --> 00:03:42,400 Speaker 2: the world. You go in, they're cheap, you kill off 76 00:03:42,440 --> 00:03:45,480 Speaker 2: an industry, and then you basically own it. So it's 77 00:03:45,520 --> 00:03:48,680 Speaker 2: a good strategy, but it is quite corrupt. 78 00:03:48,840 --> 00:03:51,040 Speaker 1: So if I had a minister on from the government 79 00:03:51,040 --> 00:03:52,600 Speaker 1: a go and they go, oh, no, we've got laws 80 00:03:52,600 --> 00:03:55,200 Speaker 1: around this, you're telling me it's their kind of pointless 81 00:03:55,240 --> 00:03:56,800 Speaker 1: laws because they don't achieve anything. 82 00:03:58,080 --> 00:04:01,800 Speaker 2: Well, ultimately they will because they're going to provide a 83 00:04:01,840 --> 00:04:05,400 Speaker 2: more level playing field. But it's quite possible that what 84 00:04:05,520 --> 00:04:08,120 Speaker 2: he's get out of the game entirely in the films 85 00:04:08,200 --> 00:04:12,320 Speaker 2: of time, particularly the economics of running a big business 86 00:04:12,320 --> 00:04:15,680 Speaker 2: like that, and the reduced corn they've reduced beetroot a 87 00:04:16,200 --> 00:04:18,480 Speaker 2: lot of empty land here in Hooks Bay where the 88 00:04:18,520 --> 00:04:21,080 Speaker 2: cropping bodyms have been reduced. There's a point at which 89 00:04:21,080 --> 00:04:23,839 Speaker 2: a big factory like that doesn't work anymore. So I 90 00:04:23,880 --> 00:04:26,320 Speaker 2: think the biggest threat of all is if you have 91 00:04:26,920 --> 00:04:29,680 Speaker 2: a whole lot of these products that are not working 92 00:04:29,760 --> 00:04:32,560 Speaker 2: or in decline, one day they say we'll see you around, 93 00:04:32,600 --> 00:04:35,440 Speaker 2: and that would be more devastating than the in the 94 00:04:35,520 --> 00:04:38,400 Speaker 2: nineteen days closes of the freezing works here in Hooks Bay. 95 00:04:38,560 --> 00:04:41,800 Speaker 2: Huge employer, certainly in the top three or four employers 96 00:04:41,800 --> 00:04:44,160 Speaker 2: in Hooks Bay, and that'll be seriously bad news. 97 00:04:44,400 --> 00:04:48,039 Speaker 1: Is dumping going on beyond Peaches, Oh, certain. 98 00:04:47,760 --> 00:04:49,640 Speaker 2: Of it now. I mean Donald Trump's a bit of 99 00:04:49,640 --> 00:04:51,719 Speaker 2: a peg, but he's right. It's not a level playing 100 00:04:51,720 --> 00:04:54,280 Speaker 2: field out there, There's no doubt. I mean, you can 101 00:04:54,320 --> 00:04:56,640 Speaker 2: go down and buy a very good value bottle of 102 00:04:56,640 --> 00:04:59,600 Speaker 2: wine from Europe and you're thinking, how are they doing 103 00:04:59,600 --> 00:05:02,039 Speaker 2: it this cheap? And you can do that with quite 104 00:05:02,040 --> 00:05:04,640 Speaker 2: a range of products. It is the world of sort 105 00:05:04,640 --> 00:05:07,960 Speaker 2: of pickally out of China State sanctioned capitalism, and there's 106 00:05:07,960 --> 00:05:09,760 Speaker 2: a whole lot of products. I fail to see how 107 00:05:09,760 --> 00:05:11,880 Speaker 2: they can put out some electric cars at the prices 108 00:05:11,920 --> 00:05:15,120 Speaker 2: they do, So you know, they support their businesses, particularly 109 00:05:15,120 --> 00:05:18,760 Speaker 2: early on, and they make strategic decisions to get a 110 00:05:18,839 --> 00:05:21,320 Speaker 2: foothold in the market. So it's a tough old world 111 00:05:21,320 --> 00:05:24,359 Speaker 2: out there, and it certainly isn't the idealistic world of 112 00:05:24,400 --> 00:05:25,719 Speaker 2: free trade that we dream of. 113 00:05:25,760 --> 00:05:28,520 Speaker 1: And I still hopeful, well, well said Paul, appreciate it 114 00:05:28,560 --> 00:05:31,080 Speaker 1: very much. Paul Painter is the Gummy Fruit Company general manager. 115 00:05:31,120 --> 00:05:33,679 Speaker 1: That EV thing I do know about and have mentioned 116 00:05:33,720 --> 00:05:37,080 Speaker 1: it on the program before, And it's all subsidized by 117 00:05:37,080 --> 00:05:39,760 Speaker 1: the government, and so they can't make the cars for 118 00:05:39,800 --> 00:05:42,320 Speaker 1: the prices they're selling them. And there's about one hundred 119 00:05:42,320 --> 00:05:44,160 Speaker 1: EV makers in China at the moment, most of which 120 00:05:44,200 --> 00:05:46,560 Speaker 1: will eventually disappear and you'll be left with maybe four 121 00:05:46,640 --> 00:05:48,440 Speaker 1: or five, six or seven something like that. The names 122 00:05:48,440 --> 00:05:50,960 Speaker 1: you probably know already, but there's a lot of names 123 00:05:50,960 --> 00:05:54,240 Speaker 1: in our market alone that you will see today you 124 00:05:54,279 --> 00:05:57,000 Speaker 1: probably won't see any year's time, and you'll be asking yourself, 125 00:05:57,080 --> 00:05:59,400 Speaker 1: where do I get the bits for it? Where's the 126 00:05:59,440 --> 00:06:03,920 Speaker 1: service sent, where's the salesman, what's my resale value on 127 00:06:03,960 --> 00:06:07,280 Speaker 1: my whatever you call it's called in the answers zero, 128 00:06:07,760 --> 00:06:10,960 Speaker 1: So it's it's the peach thing worries me. That's why 129 00:06:10,960 --> 00:06:13,360 Speaker 1: we got them on. So they did a study. They 130 00:06:13,400 --> 00:06:17,640 Speaker 1: found the crime they and the trigger pointer is material damage. 131 00:06:17,640 --> 00:06:19,760 Speaker 1: And yet what's you know. They'll stick a few tariffs 132 00:06:19,760 --> 00:06:22,080 Speaker 1: on but it's too late. So what's the point of 133 00:06:22,120 --> 00:06:24,960 Speaker 1: all of that. For more from the Mic Asking Breakfast, 134 00:06:25,160 --> 00:06:28,520 Speaker 1: listen live to news talks it'd be from six am weekdays, 135 00:06:28,720 --> 00:06:30,720 Speaker 1: or follow the podcast on iHeartRadio.