McDonald's gives assurance to local potato growers
Tuesday, 14 July 2020
McDonald’s New Zealand has given an assurance to its local potato growers that it will continue to support local suppliers and will not be tempted by “cheaper” imported options.
A huge international surplus of potatoes due to Covid-19 restrictions limiting sales in hospitality has led to fears of cut-price frozen potato products from Belgium and the Netherlands being dumped in New Zealand.
However, on Tuesday a McDonald’s NZ spokesperson said the fast food giant sourced 85 per cent of its ingredients and produce from Kiwi suppliers and had no plans to change that.
“The majority of McDonald’s NZ ingredients are grown or produced in New Zealand, and we value the long term relationships we have with our suppliers.”
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McDonald’s NZ orders more than 12,000 tonnes of potatoes from Washdyke-based McCain Foods each year to meet its demands.
“McDonald’s globally has a stringent set of requirements around the taste, texture and overall quality of its World Famous French Fries,” McDonald’s New Zealand managing director, Dave Howse, said.
“Three of the 11 types of potatoes that meet McDonald’s French fries standards grow in New Zealand soil and are supplied by McCain – a key member of our New Zealand supply chain.”
Potatoes NZ said spokeswoman Gemma Carroll it was “completely reassuring” that McDonald’s valued its relationship with its New Zealand suppliers.
“As far as their relationship with processes go they are also honouring their contracts with our growers,” she said.
Carroll urged businesses seeking a cheaper alternative to look at the “long term option rather than the short term gains”.
“Not so much a matter of McDonald’s probably going with cheaper fries, it will be restaurants and supermarket lines.
“They may buy cheaper chips but the long term consequences really lie with what that does to the NZ potato industry.”
She advised people buying chips in a café, restaurant or supermarket to always check the label and ensure they are buying products of New Zealand origin.
“In a restaurant or café, ask the staff if they are using New Zealand fries, or potatoes.”
Carroll said another long term consequence could be a shortage of supply of potatoes if New Zealand-based processors and growers are forced out of business by the dumping.
Geraldine potato grower Guy Slater said McDonalds’ support of potato producers in the region was “critical”.
“It provides a bit of surety at this time, and it is good news around that.
“For the local suppliers to McCain, that would be good news.”
Slater urged South Canterbury consumers to support McDonald’s as it meant they are also supporting local.
“It’s good for people to buy their French fries locally, and in South Canterbury at McDonald’s they’re supporting very local because it is processed here at Washdyke.
“It is a very good story to have that kind of support.”
In a statement on Monday, Potatoes NZ said according to trade data exports frozen potato products from the European Union to New Zealand were up about 50 per cent for June.
As a result, the body submitted an application to Ministry of Business, Innovation and Employment earlier in July for anti-dumping duties on frozen potato products originating in Belgium and the Netherlands.
The application is based on the real threat of material injury to the New Zealand potato industry, Potatoes NZ said.
“The surpluses combined with the support the European industries are receiving from their governments, will drive export prices down further, increasing dumping margins and the threat to the New Zealand industry.”
Federated Farmers’ South Canterbury vice president Colin Hurst said he was fully behind the potato growers in their quest to have levies imposed on imported potatoes. .