Growers in Hawke’s Bay are calling for an urgent moratorium on the dismantling of machinery at the McCain food processing plant in Hastings ahead of its scheduled shutdown in January. The push for a delay is part of an effort to determine if the regional frozen vegetable industry can be salvaged.
Urgency to Preserve Infrastructure
Hugh Ritchie, co-owner of Drumpeel Farms, who has supplied McCain for decades, is leading the call to halt the removal of equipment. Ritchie, who recently harvested the final crop of carrots for McCain in Hawke’s Bay, warns that the dismantling process reduces the site’s value and increases future costs.
“Everyday that goes by something else is being pulled apart is another day or two days that you have to put it back together so that’s all costs, or basically reducing value, so it’s pretty urgent,” Ritchie said. He noted that the facility has been well-maintained and contains some brand-new equipment that has never been used.
Ritchie is advocating for a delay to allow time for a feasibility study, stating, “if the plant and equipment disappears, that makes setting up even harder.”
Regional and Economic Significance
The stakes for the region are high, as the Heretaunga plains are recognized for having some of the most fertile and versatile soils for food production. The area currently supports more than 50% of the total New Zealand harvest for various vegetables, grapes, and fruits.
Central Hawke’s Bay Mayor Will Foley emphasized that the situation extends beyond individual growers, affecting the broader local economy and national food security. “It is really a team effort and as a council we’re trying to give the growers as much support as we can because it’s not just directly impacting them, it’s the whole local economy and sort of almost food security keeping New Zealand growing food on the shelves,” Foley said.
Potential for Salvage
McCain has confirmed to 1News that several parties, including growers, have expressed interest in the frozen vegetables site, which processes more than 50,000 tonnes of vegetables annually. While the company stated it would not provide further details due to ongoing commercial discussions, it acknowledged the potential interest in the plant and its equipment.
Ritchie, who has researched the market in Japan and visited the Hastings factory, suggests that any future operation may require a new approach. He indicated that potential tonnage may not be the same initially and that the industry might need a different road to market, possibly supplying other suppliers or shifting packaging for export away from the site.
Government Involvement and Next Steps
Agriculture Minister Todd McClay has stated he is open to realistic options, provided there is a clear business case. McClay has instructed the ministry to work quickly on the matter given the tight timelines.
“The highly first thing we have to do is to see what a feasibility study would show us and then have a clear understanding of a business case,” McClay said. “If there is feasibility we should sit down and talk.”
The future of the industry in Hawke’s Bay may now depend on the results of this feasibility study and whether McCain agrees to pause the dismantling of the facility to allow for a viable alternative to be established.
