Wattie’s has informed several peach growers in Hawke’s Bay that their fruit will no longer be needed, as the company scales back its canned peach production.
Some growers have partly attributed the decision to foreign competitors entering the market after Cyclone Gabrielle, with concerns raised that the canned fruit stocked in many Kiwi pantries might soon be entirely imported.
Reports indicate that the reductions are a result of Wattie’s losing a contract with Pams and increased competition in the canned peach market following disruptions to local supply caused by the cyclone.
It is uncertain whether other types of fruit are also impacted.
Dean Smith, chief executive of Summerfruit NZ, which represents fruit growers, described the move by Wattie’s as a major shift.
“We are concerned for the welfare of the growers that are impacted by it, and we acknowledge that the investment that goes in is a long-term investment.
“So, any time there is a very significant and sudden change in demand for what you grow, it is concerning,” he said.
He was uncertain about the extent of the changes and the number of growers affected. However, he acknowledged that several peach growers were impacted and said there is a clear commitment to scaling back canned peach production in Hawke’s Bay.
“We encourage consumers to be aware of where the product they are purchasing comes from and to support locally canned products,” Smith said.
“It’s not always the cheapest, but it’s always better.”
Meanwhile, a Wattie’s spokesperson said that decisions affecting growers and the future of New Zealand crops are “never made lightly.”
“Over recent years, we’ve seen a steady decline in demand for New Zealand–grown canned peaches, with many consumers choosing cheaper imported alternatives. As a result, we’ve had to adjust the volumes we can sustainably take from local orchards.”
Wattie’s has its headquarters in Hastings, where it employs hundreds of staff and makes a wide variety of food products, including canned fruit.