A production shortfall following Cyclone Gabrielle opened the door for Chinese canned peaches to enter the market.
Now they are undercutting local products and have established a lasting presence.
Wattie’s has notified several peach growers in Hawke’s Bay that their fruit will no longer be required, as the company reduces its canned peach production.
Some growers have partly linked the decision to the entry of foreign competitors into the market following Cyclone Gabrielle, expressing worries that canned fruit in many Kiwi homes could soon be completely imported.
Reports suggest that the cutbacks stem from Wattie’s losing a contract with Pams, combined with heightened competition in the canned peach market after local supply disruptions caused by the cyclone.
Wattie’s has informed around 20 growers that their contracts are being terminated.
New Zealand peaches will continue to be produced at the company’s Hastings cannery, but the premium product is more expensive than imported fruit, and consumers are responding by choosing based on tighter budgets.
Wattie’s said it is collaborating with affected growers.
“We recognise this is a difficult time for them and their businesses and are committed to helping them through this transition phase.”
“Since Cyclone Gabrielle hit in early 2023, the disruption to local orchards not only affected our ability to supply fruit but also opened the door for more imported products. Since then, we haven’t recovered to the volume we saw before the cyclone.”
“The reduction has been a necessary response to an ongoing decline in demand for New Zealand-grown product, as more Kiwis opt for cheaper imported alternatives.”
Wattie’s said there are currently no plans to stop producing Wattie’s canned peaches or to import peaches. The company remains “committed to offering a range of canned fruit that is New Zealand grown, including peaches”.