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NZ’s Only Tuna Cannery On The Auction Blockff

8 April 2008 New Zealand

New Zealand’s only tuna cannery is on the auction block after falling victim to the high New Zealand dollar, compared to the weakening US dollar.

Family-run business Ocean Pure began canning albacore tuna and pet food at its factory in the Cloudy Bay Business Park in 2003, but its plant is to be auctioned off today at 10.30am at the factory.

Bay of Plenty-based auctioneer Alastair Beer of Alastair Beer Auctions said although it was unfortunate that the cannery had to close, the auction had garnered strong international interest.

He expected the cannery would be sold in the auction.

The last tuna cans came off Ocean Pure’s production line last May and the last pet food in January after several factors, including the strong New Zealand dollar, made the businesses unsustainable.

Ocean Pure spokesman Russell O’Flaherty said the high dollar made production of canned tuna too expensive. In August the business decided to drop the tuna canning altogether. Mr. O’Flaherty said their future plans were uncertain.

”It doesn’t take a rocket scientist to figure out how we are feeling about all this. It’s putting strain on everyone but we still believe that we can have a positive outcome,” he said.

The company was still keen to market products it had developed which had not made it onto store shelves, such as canned greenshell mussels and canned boneless salmon, Mr. O’Flaherty said.

Ocean Pure, owned by Allan and Lenore Gard, was the only cannery in Australisia to be considered dolphin-safe by US-based environmental organization Earth Island.

 

The company supplied its tuna to about 80 supermarkets in New Zealand, most in the North Island.

In 2006 the company reported it was on track to achieve a turnover of more than $40 million, as per its three-year plan, but Mr. O’Flaherty said the company’s move into the US market had been premature and costly.

”Perhaps we should’ve focused first on the New Zealand market and made our mistakes here and learnt from them and then gone over into the US… We found it really, really expensive to sustain over in the US,” he said.

Mr. O’Flaherty said the cost of cans had also increased by 40 percent in the time Ocean Pure was canning tuna, owing to growing demand for cans in China.

The increase in raw material costs and rising oil prices had also taken a toll on the tuna cannery and had greatly contributed to the demise of the company’s pet food line, he said.

Ocean Pure employed five family members and four full-time and three part-time casual employees. All had found new jobs, Mr. O’Flaherty said.