Multiple Hawke's Bay peach growers cut loose as Wattie's scales back

Growers said more overseas competition entered the sector after Cyclone Gabrielle. (Source: 1News)

Multiple Hawke's Bay peach growers have received termination letters from Wattie's as the company downscales its canned peach production.

Some growers have partly blamed the move on foreign competitors, who entered the market following Cyclone Gabrielle, and there are warnings from some that the cans of fruit found in many Kiwi pantries could soon all come from overseas.

1News understands the cuts are due to it losing a contract deal with Pams, and competitors entering the canned peach market when local supply was hit during the cyclone.

Cedar Wood Orchard owner Dave Mackie said he was going to take “a bit of a hit”.

“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.”

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Almost 20 orchards across the region, many just recovering from Cyclone Gabrielle, have received an end-of-contract letter from Wattie’s.

It’s a tough blow for Mackie, whose family has supported the brand 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.”

Meanwhile, Summer Fruit chief executive officer Dean Smith opined that horticulture is “a tough industry at the best of times”.

“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 leaders have warned that shelves may increasingly feature foreign produce in the future. It's a prospect Mackie said local growers would struggle to compete with.

Meanwhile, Smith had one message for Kiwis and their next grocery shop.

“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."

Wattie's responds

In a statement, a Wattie's spokesperson told 1News that decisions which impact growers and the future of New Zealand crops were "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," they said.

"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."

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