MPI, China discuss trade suspensions

AUCKLAND: Government officials say they have had ‘‘constructive engagement’’ with Chinese authorities, as they try to understand why China has slapped suspensions on some New Zealand seafood exports.

The Ministry for Primary Industries learned this week that China had suspended exports from two major New Zealand seafood firms’ processing sites.

Affected are a Sanford site in Havelock that processes mussels and a Sealord facility in Nelson that processes fin fish and fishmeal for animal feeds.

The suspensions concerned the interpretation of the World Health Organisation’s Covid19 guidance and food safety management, ministry deputy directorgeneral of policy and trade Julie Collins said.

Both sites had been recently subject to live video audits by Chinese customs officials.

Both had been complying under New Zealand’s Alert Level 1 protocols, Ms Collins said.

Updating the situation, Ms Collins in a statement said ‘‘officials have had constructive engagement with their counterparts in China and we’ll continue to work with them’’, but did not elaborate.

China is New Zealand’s biggest seafood export market.

Industry organisation Seafood New Zealand said exports to China in 2019 returned $713 million, up from $597 million in 2018. However, more recent government figures put the value at $400 million in the year to October 2020 after the impact of Covid19 on China’s hospitality and retail sector.

Greenshell mussel exports to China earned $337 million in 2019.

Sanford acting chief executive Andre Gargiulo said the NZXlisted company operated all its facilities to the highest standards of food safety.

‘‘We have been adhering to New Zealand’s Level 1 protocols for processing and had put in place further requirements for the Chinese market. We are working closely with MPI to find a way forward.’’

This week, Sanford told the NZX it did not expect a material impact on its operations or sales from the suspension of exports from its Havelock plant to China.

Sealord chief executive Doug Paulin said the company was working closely with the ministry and other government officials to resolve the situation.

‘‘Sealord operates all our facilities at the highest standards of food safety, passing all previous audits. We have in place additional protocols for China. Sealord won an industry Seafood Star Award for its Covid19 response including implementation of strict hygiene and safety measures, Mr Paulin said.

‘‘At this point in time, there is little material impact for Sealord, however it is important for this to be resolved . . . We await the outcome of discussions between government officials and their counterparts in Beijing.’’

Earlier this week, Ms Collins said New Zealand had taken strong steps to prevent the spread of Covid19 and did 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 Covid19 alert level.

‘‘It’s important to note that the WHO’s guidance says it’s highly unlikely that Covid19 can spread by food or packaging.’’