Heinz Wattie’s closure plan threatens Canterbury growers’ cash flow

Summarised by Centrist

Heinz Wattie’s proposed closure of its Christchurch processing plant is set to hit about 220 Canterbury vegetable growers who supply roughly 36,000 tonnes of peas a year, according to Process Vegetables New Zealand chair David Hadfield.

The bean harvest is now underway, and the carrot harvest is still ahead, but beyond that, growers face a sharp drop in income.

Heinz Wattie’s normally signs contracts for the next season in May and June, but Hadfield says there are currently no contracts on offer, and his understanding is that none are coming.

A major reason is geography. Processing vegetables needs to move quickly from paddock to factory to protect freshness and quality. In Canterbury, Hadfield says the practical limit is about two and a half hours from harvest to processing. That means supply areas are tightly tied to nearby plants, and he doubts another company could easily step into the Christchurch catchment.

Owning a factory and growing peas is only part of the equation. The product also has to be sold.

Hadfield also points to wider cost pressures. He says New Zealand production costs are high, while imported vegetables from China, Europe, and Central Asia are often cheaper. He supports free trade, but questions whether overseas growers are benefiting from subsidies that local producers do not receive.

Heinz Wattie’s said the company plans to stop producing and selling frozen vegetables, Gregg’s coffee, and dips sold under the Mediterranean, Just Hummus and Good Taste Company brands, with those products to be phased out over a year.

Read more over at Rural News Group

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