Outsauced: New Zealand's gain is Victoria's pain

Heinz has made its last bottle of tomato sauce in Australia before shifting manufacturing to New Zealand and closing its plant in Victoria with the loss of 146 jobs.

Heinz made the decision to close the plant in Girgarre, in northern Victoria, last year, as part of a global rationalisation of facilities.

Although Hastings will benefit, the town of Girgarre is hurting, and the premier of Victoria has been asked to remove Heinz products from state catering contracts.

Girgarre Football Club secretary Brian Crilly said the club could lose players, committee members and sponsors as a result of the closure as former workers leave town in search of work.

"The impact probably will be felt through sponsors and the like that used to connect to the town through the factory."

Some of his colleagues have found seasonal or casual jobs in food processing, he said.

The mothballed Deniliquin Sunrice Mill reopened last year, creating 150 jobs, but food processor SPC Ardmona has announced that 150 jobs would be cut from its manufacturing businesses in the area in coming months.

Goulburn Valley Food Co-operative is preparing a proposal to buy the Heinz plant and reopen it.

Ken Covington, a 12-year Heinz veteran, has been involved in the co-operative's plan and helped to raise A$3 million ($3.9m) in capital. The plan is conditional on a feasibility study, and what Heinz is prepared to leave behind.

The key backer of the plan – he has pledged A$2m – is John Gillet, chief executive of an aged care company in Perth.

"I know the sort of effects this can have on the community, not just for the direct employees but everyone else, and I just wondered if there was anything I could do to assist," he said.

Heinz global chief executive William Johnson has blamed supermarkets promoting private label foods for the predicament of its Australian business.

Victoria's minister of opposition business, Jacinta Allan, has called on the government of Premier Ted Baillieu to immediately "remove Heinz tomato sauce from government catering contracts".

"As Heinz has left Victoria for NZ, Baillieu should leave Heinz tomato sauce off the government table."

Heinz has also cut 160 beetroot-processing jobs in Queensland. 

Source: Stuff - Business Day