Havelock North company Te Mata Mushrooms (pictured) has plans to build a new facility further south, in Central Hawke's Bay. Photo / Warren Buckland
Havelock North company Te Mata Mushrooms (pictured) has plans to build a new facility further south, in Central Hawke's Bay. Photo / Warren Buckland
Te Mata Mushrooms says it is moving forward with its plans to build a new mushroom facility in Central Hawke's Bay, despite concerns being raised by the Government about a $19.5 million loan.
Te Mata Mushrooms announced last month it was laying off most of its 110 staff and suspending production at its base in Havelock North, where it has operated for 55 years.
It cited urban encroachment as one of the reasons behind the move.
It has turned its attention to building a new state-of-the-art facility in the future, in Takapau in Central Hawke's Bay.
Following the company's announcement last month, the Kānoa Regional Economic Development and Investment Unit (which is part of the Ministry of Business Innovation and Employment) has revealed it will now be assessing a $19.5 million loan approved to the company back in 2020.
A Kānoa spokesperson said that was due to a change in circumstances.
"Te Mata Mushrooms Holdings Limited was approved for a loan of up to $19.5 million from the Covid-19 Infrastructure Investment Fund, of which $3,549,101.62 had been paid out as at 30 June 2022," the spokesperson said.
"Kānoa will assess its investment in the project in light of Te Mata Mushroom's decision.
"Advice will be provided to ministers about the change in circumstances following Te Mata Mushroom's decision, and the impact of this on the loan facility."
The well-known company is currently located on the outskirts of Havelock North. Photo / Warren Buckland
The $19.5 million loan was for construction projects, including a new facility in Central Hawke's Bay, and work on the existing Havelock North site.
When asked about the loan, a Te Mata Mushrooms spokesman said they had spoken to Kānoa this week and were "pleased with the discussions".
"Te Mata Mushrooms has met with [Kānoa] this week to outline their plans to establish in Central Hawke's Bay as had been approved.
"We are pleased with the discussions so far and are continuing to move forward with developing a state-of-the-art facility."
Meanwhile, the company, under its resource consent, was required to have its composting manufacturing at the Havelock North base entirely inside an enclosed building by June 19, 2022.
Hawke's Bay Regional Council compliance manager Rob Hogan said the council had been preparing to issue a notice to TMM for not meeting that requirement.
"We were in the process of finalising realistic timeframes for that abatement notice when we received notice from TMM that they were mothballing their site," Hogan said.
Te Mata Mushrooms said in a statement: "Covid-19 related delays had hampered commissioning of equipment in time to meet compliance requirements".
The long-standing Havelock North company has received complaints in the past from nearby residents about bad odours - and was fined $15,000 in 2016 and $26,000 in 2018 over discharges of offensive odours.
The company was long considered a rural site, prior to housing expanding toward the mushroom farm over the years.
The company even hit back at a fine in 2016, which it labelled as the result of "urban creep".
During the announcement last month, Te Mata Mushrooms Limited chairman John Seton also said the Brookvale Rd facility was no longer fit for purpose with "the pressures caused by urban encroachment on established agricultural production".
Te Mata Mushrooms changed ownership on April 1, with Hawke's Bay-based equity firm Due North Ltd Partnership increasing its shareholding from being a minority shareholder to full ownership.
Central Hawke's Bay District Council has welcomed Te Mata Mushrooms' plans for the region.
