Sanford reports China export issues amid search for signs of 'payback'

Friday, 15 February 2019

Sanford is an experienced exporter to China.

Fisheries company Sanford says it has been experiencing 'administrative issues' with its salmon exports to China that have caused delays getting its shipments cleared through Chinese ports.

The statement from Sanford – which has a long history of exporting seafood to China – comes as politicians and business bodies are on alert for evidence that China might be retaliating against exporters for a block put on Chinese company Huawei in December supplying 5G mobile technology to Spark.

National's Todd McClay has hinted he has reason to think exporters are concerned.

Sanford chief customer officer Andre Gargiulo said in a written statement that the issues had impacted several shipments of fresh salmon since the end of January.

'We have not been given a reason for this by local authorities,' he said.

* NZTE sees nothing to prove China is taking revenge on exporters**

*** Kiwi exporters may not be covered for fall-out from 'no deal' Brexit

* Next development in Huawei saga may not be about 5G**

The company has not speculated on the reasons for the delays or made any suggestion they might be a form of payback.

National Party foreign affairs and trade spokesman Todd McClay hinted to Parliament's economic development select committee on Thursday that he had heard of export issues in the dairy, fisheries, seafood and wood products industries.

But a party spokesman said he could not provide details because conversations with businesspeople had been private.

New Zealand Trade & Enterprise chief executive Peter Chrisp revealed he had been contacting businesses over the past week to check whether they were facing problems.

But he said that while there were 'a number of stories in the market', he had not been able to substantiate a pattern that would suggest the issues faced by Kiwi exporters to China had changed.

'Some people have got issues, some haven't got issues, but China is not the easiest market in the world to engage with. I am not sure if there is anything more than 'the normal' or not,' he explained.

King Salmon chief executive Grant Rosewarne said the Nelson company was not currently experiencing any significant issues with its trade into China.

'We export a minimal volume of our king salmon to China – about 1 per cent of our production or about 100 tonnes. We are monitoring the situation, however our most recent shipments to China have arrived and been processed as normal.'

An industry source said seafood exporters to China could sometimes experience delays around Chinese New Year, which this year fell on February 5, due to the sheer volume of product going into China at that time.

The Government was this week forced to postpone the launch of the 'Year of Chinese Tourism', with sources suggesting that was down to officials being unable to pin down a Chinese minister to attend.

On Sunday, an Air New Zealand 787 plane en route to China turned back to Auckland because of an issue relating to on-board documentation concerning Taiwan.

Custom Brokers and Freight Forwarders Federation chief executive Rosemary Dawson said businesses she had spoken to appeared more concerned by potential issues that could flow from China's trade battle with the United States than by the implications for trade of a 'no deal' Brexit.

'It is a space to keep watching from our perspective.'

She was not hearing reports of retaliation against Kiwi exporters by China. Just a 'general throw-away line' voicing concerns, she said.