As workers leave the Heinz tomato sauce factory in Girgarre, Australian entrepreneur Dick Smith cooks up a salvage plan.
AS WORKERS left the Heinz tomato sauce factory in Girgarre in northern Victoria for the last time yesterday, Australian entrepreneur Dick Smith was cooking up a salvage plan.
He plans to produce his own brand of locally made tomato sauce to help fund a possible buy-back of the closed factory.
Heinz axed 146 jobs in the small country township near Shepparton to move production of tomato sauce and ketchup to New Zealand using foreign-sourced pastes, rather than fresh Australian tomatoes. Last night's shift marked the end of production at the plant.
Chris Lloyd, who had worked at the plant for 18 years, said there were some tears shed.
''We've had one person break down ? I think there'll be a few more before the day is out,'' he said.
Mr Smith described the plant closure as ''a disaster''.
''People don't realise this: you'll go to the country and there will be boarded-up towns there'll be an increasing rate of suicide as people lose their complete income,'' he said.
But Mr Smith doesn't blame the company, the big supermarket chains or government policies for the closure.
The blame, he says, rests squarely with consumers who aren't prepared to spend an extra 20 cents to buy a bottle of Australian-made sauce.
''If you want the cheapest food, everything will come from China or India,'' he said. ''It [the closure] is completely caused by us, consumers.''
Mr Smith says consumers must be willing to pay a little bit more for a locally produced item, as the price factors in Australian wages and conditions, including superannuation, for local workers.
''We have a beautiful tomato sauce from Australian tomatoes but we can't get the supermarkets to buy it from us because we've said it will be about 20 cents dearer, and they say the Australian public will only buy the cheapest of everything,'' he said.
''If I can get a sale [with supermarkets] for my tomato sauce I will jump in my plane and fly down and talk to them [the Goulburn Valley Food Co-operative] and say 'how can we make this work?'''
But whether the local co-op or an entrepreneur eventually secures the plant, it's little comfort right now for workers.
Plant employee Russell Hipwell, who had worked for the company for almost 12 years, said he'd felt a range of emotions on his last day at the factory.
''People have just got to realise that it's not just the workers who work here - it's people outside who are highly affected as well: the farmers, the people who deliver our stock, the people who take our stock away, the people who make our ingredients,'' he said.
A colleague at the plant organised for training courses in road construction and heavy truck driving, which Mr Hipwell, 47, has enrolled for, before the search for new work begins in earnest. ''You've got to keep going, and hold your head up,'' he said.
Frequently Asked Questions about this Article…
What happened to the Heinz tomato sauce plant in Girgarre?
Heinz closed its tomato sauce and ketchup factory in Girgarre (northern Victoria). The final shift marked the end of production at the plant after the company axed 146 jobs and moved sauce production to New Zealand using foreign-sourced pastes instead of fresh Australian tomatoes.
Why did Heinz move production from Girgarre to New Zealand?
According to the article, Heinz moved production to New Zealand and shifted to using foreign-sourced tomato pastes rather than processing fresh Australian tomatoes at the Girgarre plant. The article reports the move and the change in sourcing but does not provide further corporate detail.
Who is Dick Smith and what is his plan for the closed Girgarre plant?
Australian entrepreneur Dick Smith is exploring a salvage plan: he wants to produce his own brand of locally made tomato sauce to help fund a possible buy-back of the closed Girgarre factory. He said he would approach supermarkets and the Goulburn Valley Food Co-operative to try to make a local supply model work.
How did workers and the local community react to the factory closure?
Workers were emotional on the final day—some broke down in tears. Long-serving employees like Chris Lloyd (18 years) and Russell Hipwell (almost 12 years) spoke about the strong impact. Staff noted the closure also affects farmers, delivery drivers and ingredient suppliers who rely on the plant.
What reasons did Dick Smith give for the plant closure, and who did he blame?
Dick Smith described the closure as a 'disaster' and said the primary blame rests with consumers who he believes won't pay the roughly 20 cents extra for Australian-made sauce. He argued that if shoppers demand the cheapest food, production will move overseas and local jobs and standards suffer.
Would Australian-made tomato sauce cost more in stores?
The article reports Dick Smith’s estimate that Australian-made sauce would be about 20 cents more per bottle because prices need to reflect Australian wages and conditions, including superannuation. He says supermarkets told him the public will generally buy the cheapest option.
What support or retraining options did displaced workers pursue after the closure?
The article says colleagues organised training courses in road construction and heavy truck driving; one employee, Russell Hipwell, enrolled in those courses as he searches for new work. Retraining and upskilling were being used as immediate steps by some staff.
Could the plant reopen under local ownership and what would that mean for investors?
The article notes possibilities such as a buy-back by Dick Smith or interest from the Goulburn Valley Food Co-operative, but nothing is confirmed. For everyday investors, this means any potential local takeover is uncertain — watch for official announcements and commercial agreements with supermarkets before assuming jobs or production will return.
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