Wattie’s says decision to pull back on NZ-grown peaches not made lightly

Wattie's is a major employer in Hawke's Bay and also sources fruit locally. Photo / Paul Taylor

Wattie’s says it is buying less Hawke’s Bay peaches as demand for New Zealand–grown canned peaches is declining.

Hawke’s Bay Today reported this week that multiple Hawke’s Bay peach growers had been told their fruit was no longer needed.

That includes Hastings grower Mike Donnelly, who has been supplying Wattie’s for about 20 years.

Wattie’s, owned by international company Kraft Heinz, has responded to the changes, saying “decisions that affect our growers and the future of NZ crops are never made lightly”.

Wattie's canned peaches.

“Over recent years, we’ve seen a steady decline in demand for NZ–grown canned peaches, with many consumers choosing cheaper imported alternatives.

“As a result, we’ve had to adjust the volumes we can sustainably take from local orchards.

“We remain proud of the quality and taste of NZ–grown fruit, and we continue to encourage Kiwis to support local growers."

According to Pak’nSave’s online store, Wattie’s NZ-grown canned peaches (410g) cost $3.90, while Pams value peaches (410g) cost $0.99.

Wattie’s did not confirm if it planned to phase out NZ-grown canned peaches, or simply reduce production.

Wattie’s has its headquarters in Hastings, where it employs hundreds of staff, and makes a variety of products including canned fruit.

It also has sites in Dunedin and Christchurch.

Donnelly said he planned to pick the next peach crop from his 1.7ha block and replant with apples.

His understanding was the shift had to do with multiple factors, including customers preferring cheaper products such as imported canned fruit.

Summerfruit NZ chief executive Dean Smith, whose organisation advocates for summerfruit growers, said it was a significant change from Wattie’s.

“We are concerned for the welfare of the growers that are impacted by it, and we acknowledge that the investment that goes in is a long-term investment.

“So, any time there is a very significant and sudden change in demand for what you grow, it is concerning.”

He encouraged people to check labels and buy NZ-grown products.

“It’s not always the cheapest, but it’s always better.”

Hastings fruit grower John Evans, from RJ Flowers Ltd, has a contract to supply pears to Wattie’s.

He was not affected by the changes.

However, he said they would be felt within the wider industry.

“There is a huge legacy and history with Wattie’s, and it’s a sad situation, but I guess a reality check on where things are.

“Trying to compete on price point is never easy when you are competing with product that comes from origins [overseas], where their cost components are significantly lower than here.”

Wattie’s was founded in Hawke’s Bay in 1934 by Sir James Wattie.