More than 100 vegetable growers will be affected by the Hasting site’s closure.
Photo: RNZ / Nick Monro
The government is investing $50,000 into helping a group of Hawke’s Bay growers explore if they can buy the McCain Foods vegetable processing, set to close next year.
More than 100 growers of peas, corn, beans and carrots will be affected by the closure of the Hastings site, the company confirmed in March.
A group of growers who supplied McCain told RNZ last month, it was exploring the possibility of buying the factory.
Agriculture Minister Todd McClay announced on Friday that the government would help support the group to explore the possibility.
“The Government is committing $50,000 for the first stage of a feasibility study to assess what is required for a grower-led purchase of the site to be commercially viable,” he said in a statement.
McClay said he and government officials had met with representatives in the Bay and its mayors, to gather more information.
“I know this is a difficult time for the more than 100 Hawke’s Bay growers impacted by the site’s closure and the rural communities they belong to.
“I’ve asked my officials to remain in close contact with growers and to provide their expertise where required.”
With the closure tipped for late January 2027, a company representative told RNZ this week it was unable to pause the closure, as the commercial sale process of the site was already underway.
The paused was requested by Hawke’s Bay mayors Wendy Schollum for the Hastings District and Will Foley of Central Hawke’s Bay.
In a letter to growers in March, McCain ANZ agriculture director Josh Opas said it would honour all existing contractual commitments through the current season with production continuing at Hastings, as planned, but the decision would affect future growing seasons.
“The closure follows a review of our Hastings operations, which considered a range of options to strengthen the long-term position of the site,” he said in the letter.
“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.”
Hastings District Mayor Wendy Schollum and Central Hawke’s Bay Mayor Will Foley asked for the closure of the factory to be paused.
Photo: RNZ / Supplied
Also in March, competing vegetable processor Heinz Wattie’s confirmed it too would close a number of processing and packing sites nationwide.
Many in the regional rural sector expected flow-on effects from the closures ranging from vegetable and seed growing, to rural contracting and processing.
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