Multiple Hawke's Bay peach growers have received termination letters from Wattie's as the company reduces its canned peach production. Almost 20 orchards in the region, many still recovering from Cyclone Gabrielle, have been affected.
Some growers attribute the reduction to increased competition from imported peaches, which entered the market when local supply was disrupted during the cyclone. 1News reported that the cuts are also linked to Wattie's losing a supply contract with Pams.
Cedar Wood Orchard owner Dave Mackie said the change would impact his cash flow. "It is cash flow for me, it gives me money early in the season, where I can finance my apple and kiwifruit harvest through that." He added that his family had supplied Wattie's for generations. "My father produced peas for them in the 70s and 80s. We've carried it on with producing the peaches. We've been supplying Wattie's for over two generations now."
Dean Smith, CEO of Summer Fruit New Zealand, noted that peach production involves long-term investment. "I guess with the likes of peach production, these are investments that need to be realised over the long term, so anytime there's a decision which impacts growers' immediate ability to sell their fruit, it's a real struggle."
Industry representatives have warned that if production continues to shift, canned fruit on New Zealand shelves may increasingly be sourced from overseas. Mackie said this would make it difficult for local growers to compete. Smith added, "I'd just really like to encourage New Zealand consumers to consider where their product purchasing comes from, consider the provenance of it, and vote with your wallet."
In a statement, a Wattie's spokesperson said, "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." The spokesperson added that decisions which affect growers and the future of New Zealand crops "are never made lightly."
Wattie's said it remains committed to supporting local fruit where possible. "We remain proud of the quality and taste of New Zealand–grown fruit, and we continue to encourage Kiwis to support local growers by choosing Wattie's canned fruit."
Source: 1 News