Hastings Mayor Wendy Schollum described McCain’s plant shutdown as a “huge shock,” while acknowledging the deep links between private enterprise and local prosperity, warning of a “knock-on effect” throughout the community’s broader food production economy.
McCain has confirmed it will shut its Hastings vegetable-processing plant citing mounting financial pressures that mean the operation is no longer sustainable under its current model.
Schollum said the immediate concern was for those directly affected by the closure, while also raising longer-term questions about the sustainability and competitiveness of the industry in Hastings and the wider Hawke’s Bay region.
“This is devastating for our community. This really is, especially on the back of Wattie’s announcement,” she said, referencing mounting pressure on the region’s food production sector.
She was referring to the proposal to halt production of frozen vegetables, Greg’s coffee, and hummus, a decision expected to impact 350 jobs across the country.
Schollum called for greater investment in renewable energy as a way to retain key industries, while acknowledging the importance of ensuring such investment supports internationally competitive operating conditions.
“Our strength here in Hastings is that food production, is that innovation, and we’ve got a real pathway here for our people, but we need that renewable energy.”
Central Hawke’s Bay Mayor Will Foley said the widespread closure would have a “massive effect” on the district, which is already managing the impact of the Wattie’s restructure.
“There are examples like this right across our district. We’re a tight-knit community, and when any one part takes a hit like this, it hurts all of us.
“There’s a chain of people affected: growers, contractors and people that sow the seed, trucks, processors,” he said.