Massive Te Mata Mushrooms expansion green-lit by Government loan

Te Mata Mushrooms is to become the largest mushroom production centre in the North Island thanks to $19.5 million in Government funding. Photo / File

A new Government investment in a Hawke's Bay mushroom company will help create the largest mushroom production centre in the North Island and employment for more than 200 people.

Infrastructure Minister Shane Jones announced on Tuesday that Te Mata Mushroom Holdings Limited will receive a loan of $19.5 million to be used for construction projects at two Hawke's Bay sites – Havelock North and Waipukurau.

Work at the Brookvale site in Havelock North, which has been plagued by odour complaints from neighbours, will include the expansion of the growing facilities and an upgrade of the existing composting facility.

The enclosure of the buildings and use of new bio-filter technology will be aimed at eliminating smell issues for Havelock North residents.

Construction at the site Mt Herbert, Waipukurau site will include the construction of a dam, which is already consented by Hawke's Bay Regional Council, so that it is self-sufficient.

Following that, construction of composting and growing facilities will begin.

"The primary role of the business is producing compost and growing mushrooms," Jones said.

"It is also one of the largest non-seasonal horticultural workforces in Hawke's Bay."

Te Mata Mushrooms currently employs 120 people.

Jones said the company will work with the Ministry for Social Development to develop training programmes for apprentices and learning pathways for new recruits.

"It is expected that up to 30 per cent of the more than 200 estimated additional workforce will be Māori," Jones said.

Appeals were lodged earlier this year against the decision to allow the Hawke's Bay mushroom company to quadruple the number of mushrooms it produces.

Hawke's Bay Regional Council group manager regulation, Liz Lambert, said the council is working with the applicant and submitters to settle the appeals.

"The enclosure of the buildings and use of new technology at the Brookvale site to eliminate odour for Havelock North residents, in conjunction with new consent requirements, is a positive step if it comes to fruition," she said.

"Any investment in this operation needs to lead to up-to-date, state-of-the-art activities which don't cause nuisance for the surrounding environment."

The funding will come from the $3 billion set aside for infrastructure projects in the Government's Covid-19 Response and Recovery Fund.

Hastings mayor Sandra Hazlehurst said the "highly valued food production business" is the largest employer in Havelock North for year-round employment.

"They have a vision to turn Hawke's Bay into the mushroom production centre for the North Island, which we are proud to support," she said.

Hazlehurst said the proposal represents a significant economic development opportunity for Hastings.

"Since being established in 1967, it has also grown to become New Zealand's second-largest mushroom operation," she said.

The construction project is expected to create 107 much-needed building and associated jobs in the region.

Future growth plans include supporting independent mushroom growers through technology, compost production and marketing.

"This is a fantastic project supported by the Government that will produce huge economic and social returns for the people of Hawke's Bay," Jones said.

Te Mata Mushroom Holdings Limited was approached for comment on Tuesday.