SPC Global Ltd, based in Shepparton, Australia, has announced a reduction in its intake of peaches and pears by nearly 40%, attributing the decision to a decrease in demand for these canned fruits. The company indicated that the prevailing cost-of-living crisis has led consumers to opt for cheaper imported alternatives from countries like South Africa and China, where production costs are significantly lower. Despite these cuts, SPC expects the production volumes of peaches and pears to normalize by 2026, with no changes to the sourcing of apricots, plums, and apples.
Matthew Cornish, vice-president of Cobram and District Fruit Growers and an SPC supplier, highlighted the impact of these reductions on growers and expressed hope for economic conditions that would enable a boost in sales. Additionally, Michael Crisera of Fruit Growers Victoria emphasized the challenges faced by local growers and processors in competing with imported products, advocating for the implementation of import tariffs and government support in promoting Australian-grown produce to safeguard the industry.
A Coles spokesperson remarked on the trend of customers choosing more affordable Own Brand products and the retailer's efforts to increase the volume of locally grown fruit in their canned range.
Source: abc.net.au