Food company McCain has rejected a request from Hawke’s Bay mayors to delay the closure of its factory while growers attempt to secure a potential takeover solution.
McCain has announced the closure of its frozen vegetable factory in Hastings, saying the decision followed a review of operations in which it was “unable to identify a sustainable pathway under the current model.”
More than 100 growers are affected by the decision.
Hastings District Mayor Wendy Schollum and Central Hawke’s Bay Mayor Will Foley have written to McCain requesting an eight-week pause on any major changes at its Hawke’s Bay processing plant.
The mayors are seeking time for growers to explore an independent feasibility study into the future of the sector.
However, McCain has said it will not agree to the requested pause.
“Prior to receiving the councils’ request, McCain had listed the site for commercial sale, and a process is currently underway for the site’s sale. Our Hastings team has already commenced decommissioning certain plant equipment,” a spokesperson said.
McCain said following the announcement, it has been approached by several parties interested in the site, including some growers. The company said, “They have engaged genuinely and constructively to respond to these parties’ preliminary enquiries, but these discussions have not progressed further.”
McCain said it “understands this is a challenging time for the vegetable processing industry in the Hastings region.” It also expressed its commitment to New Zealand and to supporting its Hastings team members.
Meanwhile, Schollum said the decision was not the outcome they had hoped for.
“McCain has now given us a clear answer, and we respect that. The focus now has to be what options remain for growers, workers and the whole food processing sector,” she said.
Schollum said growers were not discouraged by McCain’s refusal to pause its closure process.
“There is a group of growers who are seriously looking at putting in a conditional offer, and so our advocacy remains with working with the government to see if we can get that support to give growers the confidence to seriously look at backing themselves in investing in our local economy in this way,” Schollum explained.