👉 Background: SPC, which started 107 years ago, is one of Australia’s largest food processors, based out of Shepparton in Victoria. They own canned fruit brands SPC, Goulburn Valley and Ardmona.

👉 What happened: SPC has warned that it will be forced to cull some of its canned fruit production due to cost of living pressures. Canned fruit customers are turning towards cheaper, imported alternatives from countries like China and South Africa.

👉 What else: SPC told its Aussie suppliers that it will cut its peach and pear intake by almost 40%. And now SPC, Australian farmers and other food processors are pushing for the government to bring in import tariffs for canned fruit.

What's the key learning?

💡An import tariff is a tax imposed by the government on goods imported from another country.

💡 Governments can levy tariffs for a range of reasons. It might be to increase tax revenue, exert political power or in this case, to protect the local economy.

💡 We’ve seen this happen in China with the wine import tariffs where China imposed more than 218% tariff on Australian wine after some political tension. But until there are increased tariffs on overseas fruit producers, it looks like there’s going to be less fruit salad snacks in primary school lunchboxes.