Te Mata Mushrooms is suspending production at its Brookvale site and has plans to establish a new state-of-the-art facility in Central Hawke’s Bay. About 90 jobs will be lost.
The 50-year-old site in Brookvale is no longer compliant, and is facing pressure from urban encroachment, chairman John Seton said.
Odours from the Havelock North plant had been a frequent problem and cause of complaints from neighbours.
“It’s very disappointing that we need to close the facility. Despite our best efforts to resolve issues with a very outdated facility that puts our staff as well as ongoing revenue at risk, the best decision is to suspend production.”
Staff were informed last week that they will be made redundant. Crops still needed to be picked and supplied, so staff will be gradually reduced over the next four to six weeks.
They have been offered wrap-around support from the board and senior management, with assistance from the Ministry of Social Development, which appointed an early response representative.
“We are doing everything we can to support our staff, who have been very loyal and hardworking, some for more than 30 years. We will be doing our best to support them over the coming weeks to find alternative work and career development support,” Seton said.
Te Mata Mushrooms was established in 1967 and recently changed ownership. Equity investors True North became the majority shareholder in April. It had previously been owned by Michael Whittaker since 2013.
Conditions at the facility had continued to deteriorate over the last four months despite infrastructure investment and process improvements including new compost-making technology. Maintaining production levels had proved difficult with the aging facility, which had also become a potential health and safety risk, Seton said.
Te Mata Mushrooms is the second largest mushroom producer in New Zealand, traditionally producing 21 to 22 tonnes of mushrooms every week throughout the year.
Some of the difficulties had been a result of Covid supply-chain problems, which had delayed the arrival of new equipment and resulted in compliance failures. Another project to retrofit old compost growing facilities had not been as successful as hoped.
The Provincial Growth Fund has provided finance in the form of a loan facility that will be used to relocate the mushroom operation to Central Hawke’s Bay. The move is expected to create a significant number of jobs for the region.
Central Hawke’s Bay mayor Alex Walker said she welcomed the relocation and acknowledged the personal cost to workers in Brookvale.
Te Mata Mushrooms first approach the CHB District Council with its proposals to move part of its mushroom facilities to the region in 2019, and again in 2022 with support from the Provincial Growth Fund.
“Te Mata Mushrooms’ proposed investment in Tamatea-Central Hawke’s Bay supports our economic development objectives for the district, including a focus on land diversification, innovation and a shift from a volume to value economy,” Walker said.
Seton said the site at Takapau will be a world-class facility with the latest technology from the Netherlands.
“Our future location is best placed to be in Central Hawke’s Bay, which will bring economic benefits to the area as well as new jobs for local people. We still plan, however, to be back growing mushrooms on our Brookvale facility using compost made at Takapau,” he said.
A resource consent is currently being processed and facility designs are being finalised.
Walker says the council has asked Te Mata Mushrooms to engage closely with the Takapau community and mana whenua to ensure they kept informed during the consenting process and facility development.
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My family have been supporters of the mushroom farm for a very long time. Visiting the shop on a fortnightly basis. Such a shame to lose the factory all because of fellow Havelock Northians couldn’t stand the smell.
They need to suck humble pie now for the loss of jobs for the community. What are those Havelock Northians going to do for all these people that have lost their jobs?
such a pity to loose Te Mata mushrooms in Havelock North. I have regularly bought our mushrooms there for years. So good and fresh.
Have the “nimbies won again”??
90 jobs lost to the “Village” together with a few more in the support businesses.
Gains : a few more houses along Arataki Road.
Something wrong with the priorities somewhere !
I so feel for the company, the loss of economy for the town and the all those people that have lost their jobs due to a few people complaining of smells. No doubt will come a day when people in Rotorua will want something done with the smell there