Sanford and Sealord hit by Chinese trade suspension

Wednesday, 10 February 2021

Sanford maintains it has kept to all the necessary Covid protocols.

Government officials say they are talking to Chinese authorities after two New Zealand fishing companies were suspended from exporting certain products to China.

The Ministry for Primary Industries is ‘’urgently seeking clarification’’ from China after being notified of the suspensions on Monday night.

They revolve around products from a Sanford mussel processing facility in Havelock and two Sealord facilities in Nelson that process deep sea fish and fishmeal for animal feeds.

Sanford told the NZX on Wednesday the move followed a video audit of its Havelock facility recently by the Chinese customs authority GACC.

Sanford’s mussel factory in Havelock is one of two seafood processing plants affected by the ban.

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‘’China has a concern about ensuring that no risks are posed by any goods from any country being imported into China,’’ the company said.

Julie Collins, MPI’s deputy director-general of policy and trade, said the concern did not relate to Covid-19 transmission, but concerns raised during the audits, which were carried out in late January.

She said it appeared there were issues around interpretations of the World Health Organisation’s Covid guidance and food safety management.

‘’New Zealand has taken strong measures to prevent the spread of Covid-19 and does not have community transmission.

‘’This includes our strong hygiene measures put in place by food manufacturers and exporters, which adapt to each level of risk according to our Covid-19 Alert level.

‘’It’s important to note that the WHO’s guidance says it’s highly unlikely that Covid-19 can spread by food or food packaging.’’

Collins said both companies were complying with Alert Level 1 protocols.

Neither company expected the ban to have a material financial impact at this stage, and both said they had adhered to the New Zealand protocols plus additional requirements for the Chinese market.

But Sealord chief executive Doug Paulin said it was important the situation be resolved.

‘’We await the outcome of discussions between Government officials and their counterparts in Beijing.’'

He noted that Sealord had won an industry award for its Covid-19 response.

Sanford said it operated ‘’to the highest standards of food safety’’ and did not anticipate the current suspension would have a material impact on operations or sales, but would keep the market informed.

Shares in Sanford fell 3.2 per cent to $4.74 in mid-morning trading.

In November last year there was controversy around the discovery of traces of Covid-19 on frozen food packages in a Chinese cold store facility, which included tripe from New Zealand.

Although experts generally do not consider contamination from packaging to be a significant health risk, the virus can survive on surfaces and longer in cold, dry conditions.

The Ministry of Foreign Affairs and Trade said at the time that there was no evidence the New Zealand product was the source of the virus.