Growers in Hawke's Bay have confirmed they will not continue exploring the option to purchase the McCain vegetable processing facility in Hastings.
A statement from Hawke's Bay District Council and Heretaunga Hastings District Council said the growers' initial interest was on the basis processing equipment would be part of a sale.
However, they have since learned the equipment is no longer available, it said.
McCain announced in March this year the factory would close by January 2027. It is one of two sites the company has in New Zealand, the other being located in Timaru.
The factory on Omahu Rd in Twyford processes more than 50,000 tonnes of vegetables annually, including peas, beans, sweetcorn, and carrots.
In May, 1News reported local growers in Hawke's Bay had been exploring options to save the factory in an effort to salvage the industry in the region.
Today, spokesperson Hew Dalrymple said the growers had explored the opportunity thoroughly and in good faith, however they have been left with no option other than to withdraw the offer.
Dalrymple said it was an "incredibly disappointing outcome for us all".
"On learning the processing equipment is no longer available, that fundamentally changed the situation.
"While this particular chapter has come to an end, it doesn't diminish our commitment to finding a future for vegetable growing and frozen vegetable production in Hawke's Bay.
"Our growers remain committed to exploring what opportunities may still exist."
Hastings District Mayor Wendy Schollum said it was a disappointing outcome after months of work.
She acknowledged the efforts the growers had made to secure the future of the facility.
"We have worked alongside growers throughout this process, and I want to acknowledge the enormous effort they have invested over recent months to explore every possible option.
"If we want New Zealand to keep producing and processing more of its own food, we need practical action to support this sector. We will continue to stand alongside growers and advocate to Central Government for a strong and sustainable future for vegetable growing and processing."
Central Hawke's Bay Mayor Will Foley said discussions with central Government would continue.
"We remain in active discussions with Government because its support will be critical to determining whether there is a sustainable future for vegetable growing and processing in Hawke's Bay.
"This industry has been part of our region for generations. We owe it to our growers, workers and communities to continue exploring every opportunity to retain and grow that capability into the future."
Both councils said they would continue working alongside growers, industry and Government to determine whether there remained a viable future for vegetable growing and frozen vegetable processing in the region.
McCain has refused to say how many jobs are being lost at the factory.
1News approached McCain for comment about this latest development. It sent a previously released statement.
"McCain has continued to communicate directly with key stakeholders throughout this transition period, and we recognise that this is an important issue for growers, employees and the wider Hastings community," said a McCain spokesperson.
"We remain committed to engaging respectfully and transparently with growers and other stakeholders as the transition progresses.
"We are also continuing to consult and communicate directly with affected employees whose roles may be impacted by providing them with all relevant information about the planned closure, as well as providing dedicated transition assistance, career support, and access to wellbeing services."
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