New Zealand government invests NZ$50,000 in Hawke's Bay grower group's McCain takeover bid
New Zealand's government has committed NZ$50,000 to support a local growers' group's bid to take over the McCain Foods factory in Hawke's Bay, in a move aimed at preventing the plant's planned closure. The grant is intended to preserve regional food-production infrastructure. The investment could delay the factory's July closure date.
New Zealand's government has committed NZ$50,000 to a local potato growers' group, Heretaunga Growers, to support its bid to take over the McCain Foods factory in Hawke's Bay and prevent the plant's planned July closure. The grant will fund technical-feasibility studies for the acquisition proposal. McCain Foods had announced the factory would close on operational-efficiency grounds.
Agriculture Minister Todd McClay said in his statement that 'the fragility of the regional food-production network must be re-examined'. Heretaunga Growers chair Anna Rowsell said the package is 'a symbolic start but insufficient for the structural investment required'. The company emphasised the need for a local economic plan for the transition of 280 workers.
Ian Proudfoot, food-sector strategist at KPMG New Zealand, said 'the feasibility challenges for small-scale grower takeovers remain structural'. Hawke's Bay Regional Council said it has launched institutional applications for an additional NZ$1.2 million in support. McCain Foods New Zealand CEO James Russell said discussions are 'being kept open'. This article is sector analysis and not investment advice; readers should consult a licensed financial adviser.
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