The McCain vegetable processing plant in Hastings will shut down by early 2027, the company has confirmed, raising concerns about job losses and wider economic impacts in the region.
According to a report by 1News, McCain New Zealand, part of global food giant McCain Foods Limited, operates two sites in the country, Timaru and Hastings. The Hastings facility, located on Omahu Rd in Twyford, processes more than 50,000 tonnes of vegetables each year, including peas, beans, sweetcorn, and carrots.
In a statement, a McCain spokesperson confirmed the closure timeline, saying the Hastings plant would "close at the end of this year’s processing and packing season, which is expected to conclude by January 31, 2027," as quoted by 1News.
"The decision follows a strategic review of our Hastings operations and reflects a shift in how McCain will supply its vegetable portfolio within Australia and New Zealand. After carefully considering a range of options, we determined that transitioning to a different supply model is the most responsible path forward and best supports the long-term vision of our organisation. McCain is currently consulting with all employees whose roles would be affected by the planned closure," 1News has quoted.
While the company acknowledged that jobs at the site would be impacted, it has not disclosed how many roles will be lost. McCain employs about 1200 people across New Zealand and Australia.
"McCain is consulting and communicating directly with affected employees whose roles may be impacted by providing them with all relevant information about the planned closure, and is also providing dedicated transition assistance, career support, and access to wellbeing services," as quoted by 1News.
The announcement comes shortly after similar moves in the food manufacturing sector. Earlier this month, Heinz Wattie’s Limited revealed plans to stop producing and selling frozen vegetables, affecting around 350 roles and involving the closure of its Christchurch factory, along with sites in Auckland and Dunedin.
Local leaders say the impact of the McCain closure will be significant. Central Hawke’s Bay Mayor Will Foley described the decision as "a tough pill to swallow for Central Hawke’s Bay, and the wider region,"
"This will have a massive effect on our district, which is already trying to grapple with the Watties restructure.
"My thoughts immediately go to everyone here that’s trying to navigate this news. There’s no warning for this type of thing," as quoted by 1News.
Foley highlighted the ripple effect on local growers and workers, pointing to one farmer as an example.
"I think about people like Simon, one of our crop farmers, who sends his peas and corn to McCains. This impacts him, his family and the people that work for him.
"There are examples like this right across our district. We’re a tight-knit community and when any one part takes a hit like this it hurts all of us," 1News has quoted.
He added that the closure would affect a wide network of people involved in the supply chain.
"We need to get to the bottom of the concerns these businesses raise before we get more surprises like this, that cause more heartache and more pain," as quoted by 1News.
Labour’s jobs and income spokesperson Ginny Andersen also criticised the development, saying the closure was "another blow" that would "hit workers, their families, and the Hawke's Bay community hard," as quoted by 1News.
"Sadly, this is not a one-off event at one company; this is part of a broader pattern of closures affecting thousands of jobs across the manufacturing sector under Christopher Luxon’s watch," 1News has quoted.
Andersen said the decision reflects a wider trend across the industry.
“We’ve now seen major closures at Wattie’s, Kinleith Mill, Winstone Pulp, Sealord, and many other companies reducing their workforces," 1News has quoted.
"Each one of those jobs lost is a family struggling to pay the bills or a loved one moving to Australia," as quoted by 1News.
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