McCain closes factory down under after this season

It has been clear to affiliated growers for some time that things were not going well at McCain, but the fact that the Canadian company is pulling the plug so soon comes as a shock to them. At the end of the current season, which concludes in late January 2027, vegetable processing at the Hastings factory will also cease. 50.000 tonnes of vegetables are processed here annually. 200 employees work at the site, and around 100 growers are affiliated with McCain.

From peas to carrots
The factory was purchased from a local party in the 90s to process primarily peas, green beans, carrots, and sweet corn. McCain produces frozen fries and other potato products in a separate factory located next to it.

Substantial acreage reduction
Last month, New Zealand farmers were hit by the news that Heinz Wattie's, part of Kraft Heinz, is going to close a major plant for the processing of canned vegetables and potato products. Close in the country. This closure comes on top of that. According to growers' organization Vegetables New Zealand, McCain controls a fifth of the national canning industry. A total closure is therefore a major blow to the sector.

Various reasons are cited in the local media for the closure. McCain itself had previously indicated to its growers that storage capacity in its cold storage facility is full of products and sales are not going well. Just as in the Northern Hemisphere, the agricultural sector in New Zealand is struggling with ever-rising costs for production and processing. Exports are also becoming increasingly expensive, particularly with the recently sharp increase in container transport costs on which the country is heavily dependent.