Food HB to close as cash dries up

Phil Pollett from Food Hawke's Bay.

Food Hawke's Bay (FHB) is closing its doors because of lack of funds.

Chairman Phil Pollett said membership had fallen because there was no shortage of help for food businesses seeking growth.

The number of industry organisations and economic development agencies offering support had grown over the years, with a range of support available through membership-based and public bodies.

Competition for support funding from central government agencies, local councils and private-sector sponsorship was "stiff".

"FHB has not been able to offer a sufficiently differentiated service to sustain the level of membership it needs to remain viable, or to attract funding from other sources," he said.

"All options for continuing to operate have been exhausted and there has been considerable effort put into maintaining and growing the membership base and to deliver revenue-generating events and activities.

"However, now with cash reserves having reduced to the point where we can no longer continue to staff the organisation, there is no alternative but to close the doors."

The financial sustainability of FHB came into question last year when the Hastings Farmers' Market and the Napier Urban Market de-merged from FHB. Membership to FHB - from $330 - was compulsory for stallholders.

Mr Pollett said 40 members initially left but 23 rejoined.

"It was sad to see them go but they continue to do a great job and it freed up a lot of time for us to do what we wanted to do, but unfortunately we have run out of money."

FHB had reserve funds for 10 of its 13 years "but we can't continue without substantial input".

Membership fees were unlikely to be refunded because of costs associated with FHB's two employees.

Mr Pollett said talks were under way with several agencies to continue FHB's activities such as the annual Hospo Awards, Lochinvore's Lunch and Best Brunch in the Bay.

"Those will all continue - no problem at all - there are people pretty excited about getting their hands on those events."

Mr Pollett said FHB worked in well with economic development agency Business Hawke's Bay, which appointed a food and beverage programme manager last year.

"I think we had a really bright future, but there is no future with no money."