New Zealand’s frozen vegetable sector has lost processing capacity following plant closures announced by Heinz Wattie’s and McCain in March 2026, affecting growers supplying peas, beans, corn and carrots.

Heinz Wattie’s announced the closure of sites in Hastings, Dunedin, Auckland and Christchurch, resulting in 350 direct redundancies and affecting 220 suppliers. McCain also confirmed the closure of its Hastings vegetable processing plant. Combined, the changes affect more than 320 growers across Canterbury and Hawke’s Bay.

A Hawke’s Bay grower consortium subsequently explored a cooperative takeover of the McCain facility. The proposal ended in July after McCain confirmed that the processing equipment was no longer available, increasing the capital required to restore commercial-scale freezing capacity.

The closures were considered by a government inquiry that reported on September 17, 2026. Commerce Commission chairperson Dr John Small said fewer processors could weaken growers’ negotiating position on prices.

Growers receive around NZ$0.63 (US$0.37) per kilogram for peas that retail for approximately NZ$6 (US$3.50) per kilogram, according to the provided figures. David Hadfield, chair of Processed Vegetables NZ, linked the closures to increasing costs and compliance requirements, as well as competition in frozen peas and beans.

The loss of processing outlets also affects crop rotations. Peas, beans and corn are used within mixed farming systems for soil nutrient management, cash flow and subsequent livestock grazing.

Growers appearing before the inquiry have called for examination of supermarket structures, international subsidies and energy prices in relation to vegetable processing. MPs have also discussed whether processing facilities could be maintained long enough to enable cooperative takeovers.

The closures come as New Zealand’s primary industries recorded NZ$60.4 billion (US$35.2 billion) in export revenue in the year to June 2025, compared with the previous record of NZ$59.9 billion (US$34.9 billion).




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Source: b2bnews.co.nz



Publication date:

Fri 18 Sep 2026