The government has committed $50,000 for Hawke’s Bay growers to assess whether a co-operative takeover of the McCain Foods processing site in Hastings is commercially viable, with the factory currently due to close in January.

MP for Napier Katie Nimon says the funding followed sustained pressure from local councils.

“The community hasn’t taken it lying down, particularly the growers, because of course it’s their livelihood,” she says.

“Various councils came to us a while ago, and said, ‘We want to have a meeting, we want to discuss it.’ So Catherine Wedd, MP for Tukituki and I brought Todd McClay, the Minister for Agriculture, up to Hawke’s Bay.”

That meeting produced the $50,000 commitment.

“This $50,000 for the feasibility study is really for the growers to be able to test the commercial viability of the option,” says Nimon.

The structure under consideration is a co-operative.

“We’ve seen really great examples of where that works, whether it’s Fonterra or Ravensdown.”

Taking on the plant would make any buyer a direct competitor to McCain Foods.

“They’ve been pretty quiet.

“They’re also not entitled to solve this for the next person… they haven’t indicated that they’ll be there to sort of help support the next person because ultimately the next person’s going to become competition for them.”

She says the company is also decommissioning equipment through the process.

“If we’re expecting them to help facilitate somebody else taking over the factory, I don’t imagine they’re necessarily going to jump at the opportunity.”

The factory is still operating and is not due to close until January.

“If you wait until January to do something, you’ve got a problem, which is why the growers are working on their solution at the moment.”

The plant could also come to market before the closure date, she says, adding further pressure on timing.

Nimon says the region’s identity as a producer of peas, carrots, and corn is tied to the factory, with more than 100 growers are affected by the closure.

“Ultimately, what we want to see is someone take that plant on so that the growers are still able to provide the produce and have the jobs that were there as well.”

CountryWide CONNECT with Andy Thompson & Sarah Perriam-Lampp is our daily rural show livestreamed from 11am-1pm. Visit country-wide.co.nz on how to watch/listen or download the CountryWide CONNECT mobile app, available on Apple iOS and Android.