1
00:00:00,120 --> 00:00:02,280
Speaker 1: What happens to the vegie growers? What is looking to

2
00:00:02,320 --> 00:00:06,160
Speaker 1: act production of its frozen vegetables, plans to shut three facilities,

3
00:00:06,200 --> 00:00:09,120
Speaker 1: three hundred and fifty jobs on the line, High costs,

4
00:00:09,280 --> 00:00:13,119
Speaker 1: tough manufacturing environment to blame it. David Hadfield is chair

5
00:00:13,240 --> 00:00:16,520
Speaker 1: of Processed Vegetables New Zealand with me Live this morning. Morning,

6
00:00:16,600 --> 00:00:20,760
Speaker 1: David Morning, What happens to the contracts with growers?

7
00:00:21,800 --> 00:00:26,520
Speaker 2: Oh, well, contracts are annual, so this current year's contracts.

8
00:00:26,640 --> 00:00:31,080
Speaker 2: Pea harvest has just finished, beans are underway, characters are

9
00:00:31,120 --> 00:00:37,000
Speaker 2: still to happen, So it'll be next season that it

10
00:00:37,040 --> 00:00:41,520
Speaker 2: will affect us because normally in May through the June

11
00:00:41,600 --> 00:00:46,800
Speaker 2: July the what he's reps are out around seeing growers

12
00:00:46,960 --> 00:00:50,640
Speaker 2: and signing up for the next season. But they will

13
00:00:50,760 --> 00:00:54,520
Speaker 2: have grown p seed for next season, so that's probably

14
00:00:54,520 --> 00:00:58,720
Speaker 2: sitting in a grain store at the stage unless that

15
00:00:59,000 --> 00:01:02,680
Speaker 2: let those guys no earlier than this, but I doubt

16
00:01:02,720 --> 00:01:04,520
Speaker 2: they would have because it would have got out if

17
00:01:04,720 --> 00:01:05,560
Speaker 2: bed had to happen.

18
00:01:06,480 --> 00:01:10,400
Speaker 1: So what happens to that and what happens to the growers?

19
00:01:11,880 --> 00:01:14,240
Speaker 2: The growers now are going to have to lock for

20
00:01:14,319 --> 00:01:20,080
Speaker 2: other crop options. Process peas and beans were a good

21
00:01:20,160 --> 00:01:24,480
Speaker 2: restorative crop and their rotation on an arable farm. So

22
00:01:25,640 --> 00:01:29,720
Speaker 2: now they'll be looking for other restorative crops to put

23
00:01:29,760 --> 00:01:34,600
Speaker 2: in its place. There will be some pea seed in

24
00:01:35,480 --> 00:01:41,399
Speaker 2: peace for the feed industry contracts around. But he's a

25
00:01:41,560 --> 00:01:46,399
Speaker 2: difficult decision for some growers because they rely on the

26
00:01:46,480 --> 00:01:50,480
Speaker 2: cash flow of the process crop, mainly because you paid.

27
00:01:50,680 --> 00:01:52,760
Speaker 2: It's a ninety to one hundred and ten day crop

28
00:01:52,760 --> 00:01:56,080
Speaker 2: and you're paid in the month after its harvesters and

29
00:01:56,240 --> 00:01:58,400
Speaker 2: you don't have to We didn't have to pay the

30
00:01:58,440 --> 00:02:01,600
Speaker 2: harvest cost that was covered at as part of the

31
00:02:01,640 --> 00:02:03,080
Speaker 2: wadi's contract.

32
00:02:03,960 --> 00:02:05,960
Speaker 1: And a harvesting is obviously a lot more expensive now

33
00:02:06,080 --> 00:02:08,800
Speaker 1: the price of picture oil's going the way it is. David,

34
00:02:09,080 --> 00:02:11,600
Speaker 1: what happens? What can you give us an idea of

35
00:02:11,639 --> 00:02:13,560
Speaker 1: the financial impact for growers of this.

36
00:02:16,000 --> 00:02:22,160
Speaker 2: Well, it's one crop and a rotation that pays around

37
00:02:22,280 --> 00:02:28,720
Speaker 2: what an average crop would be so and generally most

38
00:02:29,400 --> 00:02:33,360
Speaker 2: growers it's one peddic of peas or you know, a

39
00:02:33,400 --> 00:02:37,480
Speaker 2: pedica peace and a peddic of beans. So they'll replace

40
00:02:37,520 --> 00:02:40,720
Speaker 2: it with another crop. But it's most of the cash

41
00:02:40,760 --> 00:02:46,000
Speaker 2: flow implication more than they replacing the crop, right, and

42
00:02:46,320 --> 00:02:48,480
Speaker 2: a lot of crops. We don't get paid for months

43
00:02:48,520 --> 00:02:54,120
Speaker 2: after harvest. For as far as molling wheat, it could

44
00:02:54,160 --> 00:02:57,960
Speaker 2: be eighteen months after you've planted the crop before you're

45
00:02:57,960 --> 00:03:04,560
Speaker 2: actually getting paid the crops. It's short term three months

46
00:03:04,560 --> 00:03:07,519
Speaker 2: growing season and paid in month four.

47
00:03:08,280 --> 00:03:10,960
Speaker 1: What's going on here? Is this? What's thing? Or we're

48
00:03:11,000 --> 00:03:14,440
Speaker 1: not eating beans and peas, we're.

49
00:03:14,280 --> 00:03:20,360
Speaker 2: Not eating as much. New Zealand vegetable consumptions dropping. New

50
00:03:20,480 --> 00:03:23,600
Speaker 2: Zealand does need to eat more vegetables because it's a good,

51
00:03:23,800 --> 00:03:26,360
Speaker 2: healthy product. It's going to put a burden on the

52
00:03:26,400 --> 00:03:30,640
Speaker 2: health system if they don't eat more healthy, fresh and

53
00:03:30,760 --> 00:03:36,200
Speaker 2: frozen vegetables. But there is a lot of important product

54
00:03:36,200 --> 00:03:39,280
Speaker 2: coming in and that is affecting us.

55
00:03:39,600 --> 00:03:41,400
Speaker 1: I was reading at the end of last year. There

56
00:03:41,400 --> 00:03:43,800
Speaker 1: were lots of stories around about this. Do you think

57
00:03:43,840 --> 00:03:45,080
Speaker 1: that's part of the problem here?

58
00:03:45,960 --> 00:03:50,960
Speaker 2: It is, it's definitely part of the problem. Yeah. New Zealand.

59
00:03:51,200 --> 00:03:55,080
Speaker 2: We grow some of the best and highest yuring processed

60
00:03:55,080 --> 00:03:59,760
Speaker 2: crops in the world. But the cost of production, and

61
00:04:00,640 --> 00:04:06,160
Speaker 2: that's not only the fuel costs and fertilizer costs and

62
00:04:07,520 --> 00:04:13,000
Speaker 2: chemical costs, it's also the regular literary costs on us

63
00:04:13,520 --> 00:04:18,599
Speaker 2: to actually grow crops. Now it's quite prohibitive and quite

64
00:04:18,800 --> 00:04:20,680
Speaker 2: time consuming doing the paperwork.

65
00:04:21,160 --> 00:04:23,120
Speaker 1: So what does that mean that we will grow less

66
00:04:23,120 --> 00:04:25,799
Speaker 1: of them?

67
00:04:26,000 --> 00:04:30,560
Speaker 2: Yes, there's still New Zealand growing process crops going to

68
00:04:30,560 --> 00:04:34,679
Speaker 2: be available through McCain Foods and Hawks Bay and Telly's

69
00:04:34,720 --> 00:04:38,640
Speaker 2: an experton which I suggest that New Zealanders need to

70
00:04:38,720 --> 00:04:42,880
Speaker 2: hunt out the packaging and the supermarket look at where

71
00:04:42,920 --> 00:04:49,039
Speaker 2: it's growing, not where it's packaged, because quite often the

72
00:04:49,120 --> 00:04:51,800
Speaker 2: imported product is coming in in bulk and then packaged

73
00:04:51,839 --> 00:04:54,760
Speaker 2: in New Zealand. We need to look at actually where

74
00:04:54,800 --> 00:04:55,279
Speaker 2: it's growing.

75
00:04:55,560 --> 00:04:58,720
Speaker 1: Roger and that David appreciates that. That's David Hadfield, their

76
00:04:58,960 --> 00:05:03,080
Speaker 1: Chair of Process Vegetables, New Zealand. For more from Early

77
00:05:03,200 --> 00:05:06,200
Speaker 1: Edition with Ryan Bridge, listen live to News Talks at

78
00:05:06,320 --> 00:05:09,520
Speaker 1: B from five am weekdays, or follow the podcast on

79
00:05:09,560 --> 00:05:10,320
Speaker 1: iHeartRadio