Brussels, 20/10/2006 (Agence Europe) - The Organisation of European Industries Transforming Fruit and Vegetables (OEITFL) states its is “shocked” by the European Commission's decision to impose a provisional anti-dumping duty of 34.2% on imports of frozen strawberries from China as of 19 October. These measures were taken at the request of Poland, whose own strawberry production for the processing industry would be under threat from Chinese imports (EUROPE 8985). Member States will be looking at the need to impose a definitive anti-dumping duty after six months.
In a press release on 19 October, OEIRFL considers that the measures taken by the EU are “unjustified” and “totally disproportionate”. The additional customs duty of 34.2% (in addition to the 14.4% existing import duty) on frozen strawberries will increase the cost of the final product and reduce the industry's competitiveness, OEITFL states. It goes on to stress that the fruit represents 40% of the raw material costs of jam production.
The industry is surprised that such anti-dumping measures had been requested by just eight Polish producers, who account for less than 30% of the EU's whole production. It also points out that anti-dumping calculations have been based on 2005 figures only. The Commission concludes that, during 2005, imports from China increased 381%. According to OEITFL, the 2005 figures give an inaccurate reflection of the market that regulates itself, and where price fluctuations are normal as for any agricultural product. Over the first six months of 2006, imports from China have fallen, OEITFL states. The additional duties will result in excluding China from the supply sources for European industry, which will now have to turn solely to Polish suppliers where the market is unstable, the organisation for the fruit and vegetable industry states.
The Commission's recent report on the development of the production sector for berries and other soft fruit used for processing specifies that Poland accounts for around 60% of EU supply in strawberries for the processing industry (EUROPE 9220). It confirms that the price of strawberries intended for the processing industry and for frozen strawberries collapsed in the EU in 2004 and 2005 due to the rise in Community production and the rise in low-price imports from third countries, and from China in particular. (lc)