Wattie's to stop canning Bay asparagus

Heinz-Wattie's has spurned the New Zealand vegetable for Peruvian product. Photo / File

Heinz Wattie's says it will no longer can Hawke's Bay asparagus because of a lack of supply, which local growers and unions dispute.

Group marketing manager Caroline Jones said the company was forced to go offshore.

"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.

"We have sourced from Peru which is recognised as the world asparagus capital."

Off-shore sourcing was "purely supply driven and not a cost-saving activity".

"Wattie's works very closely with local growers to ensure that the consumer demand for tinned asparagus is met."

Heinz-Wattie's did not respond to Hawke's Bay Today questions on whether jobs would be lost. New Zealand asparagus is processed in the same facility that processes baked beans, spaghetti, fruit and beetroot.

Service and Food Workers Union organiser Thomas O'Neill said the company told him low demand was the main reason for the cessation of Hawke's Bay asparagus canning.

The Council of Trade Unions and local unions were "very concerned" about multi-nationals turning their backs on local industry "and we are certainly seeing that".

New Zealand Asparagus Council Hawke's Bay representative Lindsay Kay said there was more than enough supply in Hawke's Bay but not at the price Wattie's was willing to pay.

"Wattie's has to compete with the local market and there is quite a gap between what Wattie's pays and what the local market will return. Wattie's can't resist the bargain-basement price of a product from Peru."

The Wattie's canning season this year did not match the growing season.

Asparagus started growing mid-September but this year the company did not start canning until October 28, Mr Kay said.

"Personally, over that period, we probably supplied 15 tonnes to other people because Wattie's weren't available - and we are just one grower."

He said asparagus required a considerable commitment. The cost of establishment was about $13,000 per hectare and the land was dedicated to asparagus year-round, taking three years to reach optimum cropping levels.

With Wattie's leaving the market many growers would turn to other crops, he said.

Mr O'Neill said Wattie's did not fully appreciate that New Zealand was "very parochial about buying locally".

Mr Kay said New Zealand was not parochial enough. The country needed country-of-origin labelling to help protect industries, as Australia did, which helped keep out New Zealand apples.

Chris Kelly, manager of Whakatu asparagus canner Mt Erin Pacific, said it would be business as usual next season.