ONE of Australia’s largest food processors, SPC, is slashing its canned fruit production and reducing its peach and pear intake by 40 per cent as cost-weary shoppers turn to cheaper imported food.
In a statement Shepparton-based SPC Global Ltd recently informed Australian suppliers of “the difficult decision,” due to declining demand for their canned peaches and pears, saying that customers are purchasing alternative products imported from countries such as South Africa and China, where production costs are lower.
It is another blow for producers who have been grappling higher costs and smaller profit margins, with retailers offering their own branded fruit products that utilise fruit grown in countries with cheaper costs.
Australian fruit growers are now faced with having to pull out trees or sell to other markets to stay afloat.
State Member for Shepparton District, Kim O’Keeffe, highlighted the need for support for fruit growers now facing difficult decisions about their future.
“Our local fruit growers are experiencing significant reductions in demand for their produce and are still trying to work out what these cuts will mean for their businesses and industry and what viable alternatives they have. Some are looking to sell fruit into the fresh market, wholesalers and smaller supermarkets,” she said.
“The important thing is that SPC survives, has a strong future and that growers are supported.”
“This is a wake-up call to state and federal governments who must do more to support local industries, jobs, regional economies and alleviate cost of living pressures before other industries are impacted.”
