Growers fear canner's Peru plan

Heinz Wattie's move to import asparagus is a concern for Lindsay Kay. Photo / File

About 10 Hawke's Bay asparagus growers face an uncertain future after a decision by Heinz Wattie's to source product from Peru.

In November Heinz Wattie's group marketing manager Caroline Jones said the decision to source from Peru, "the world asparagus capital", was purely supply driven and not a cost-saving activity.

"Over many years we have done everything we can to secure enough asparagus from local growers. However, they have been unable to supply enough for our total production requirements," she said.

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Yesterday a Heinz Wattie's spokesman said "no definite decision" had been made over whether some local asparagus would be used in the coming season.

Despite the cut, New Zealand Asparagus Council Hawke's Bay representative and grower Lindsay Kay said none of the growers have removed plants following the announcement. He said the Bay growers who supplied the company last season still had options.

Mt Erin Pacific cannery had "tentatively" said it may take the Hawke's Bay crop "but they need a heads-up on whether Heinz Wattie's are going to source cheaper asparagus and take the market by storm".

Mt Erin Pacific manager Chris Kelly said no decision would be made by the Whakatu business until discussions with major suppliers next month.

New Zealand Asparagus Council chairman Tony Rickman said he doubted Heinz Wattie's claim, saying it was a cost-saving measure.

Mr Kay said a Heinz Wattie's withdrawal meant the industry would likely be over supplied. Growers outside the region should have done more to support the company.

"I think sometimes you have to do what I call sacrificial marketing and take a hit by supplying canneries at a lower price, hoping that will preserve your margin on the fresh market."

He said it was time the council ramped up its marketing/as other fruit and vegetable organisations had done and improve industry communication. "If Wellington is over supplied by 5 tonne then growers need to know that."

Asparagus requires a considerable resource commitment, needing three years to establish, but can be cropped for about 15 years. The season runs from mid-September to December.

A recent deal to export "a reasonable quantity" fell through because of the high New Zealand dollar, Mr Kay said.

Despite Heinz Wattie's Peruvian importations there were widespread new asparagus plantings "which I'm quite worried about", Mr Kay said.