McCain has announced it will close its Hastings vegetable processing plant in New Zealand by January 2027 following a review of operations.
In a letter to growers, the company said it had assessed multiple options but could not establish a viable long-term model. "The closure follows a review of our Hastings operations, which considered a range of options to strengthen the long-term position of the site.
"Despite meaningful effort, we were unable to identify a sustainable pathway under the current model. As a result, we will transition to sourcing vegetable products through trusted supply partners within our broader network."
Production at the Hastings site will continue through the current processing and packing season, with McCain confirming that all existing contractual commitments will be met. "Production at Hastings will continue through the remainder of the processing and packing season as planned.
"We recognise that this decision may have implications for future growing seasons and we are committed to working with you directly to discuss what this means for your individual circumstances."
The company stated that its agriculture team will remain in contact with growers during the transition period to provide guidance.
The closure is expected to affect growers supplying the plant in Hawke's Bay and surrounding regions. Federated Farmers Hawke's Bay provincial president Jim Galloway said the decision would have a broad impact on production. "There's a huge amount of growers that grow for McCains in the Hawke's Bay area."
He noted that growers of crops such as peas, beans, and sweet corn typically receive contracts mid-year and begin planting in August and September, with harvests extending from January through April. "Some of those crops aren't normally harvested until January, February, and as late as April.
"So, it's only the peas that they make take next year."
Galloway said the closure could affect production planning and crop choices. "It's a massive hit for a lot of farmers in the Hawke's Bay area and further down into central Hawke's Bay and across through to Manawatū."
He added that growers have invested in infrastructure and equipment tied to processing supply chains. "Now they'll have nothing to grow because there is no one there to take their product."
Transport to alternative processing facilities may also present challenges. "A lot of that production is going offshore, and is it being produced with subsidies over there, and therefore they can get it cheaper into New Zealand."
The announcement comes as Watties is consulting on a proposal to stop production of frozen vegetable lines in New Zealand, which would affect 220 growers in Canterbury.
Source: RNZ
