Uncertainty a hallmark of tomato crop for Leamington plant

Monday, April 21, 2014

by SUSAN MANN

Early reports show that less than a quarter of the southwestern Ontario tomatoes growers who used to grow for the H.J. Heinz Company of Canada’s Leamington plant in previous years are being signed up this spring to grow for the new owners, Highbury Canco Corporation.

And so far the new company that’s buying the Heinz plant has a conditional processing license from the Ontario Farm Products Marketing Commission but not a price agreement with the Ontario Processing Vegetable Growers board.

Al Krueger, executive assistant with the board, says Highbury Canco has been issued a conditional license by the Ontario Farm Products Marketing Commission to process tomatoes. “My understanding is they’re out contacting growers about growing.”

Krueger says he doesn’t know for certain how many farmers will be growing for Highbury Canco but “I’ve heard it’s between eight and 10.” He also didn’t know what conditions were put in place by the commission for Highbury’s processing license.

Highbury Canco officials couldn’t be reached for comment. Neither could Geri Kamenz, chair of the Ontario Farm Products Marketing Commission.

Previously, Heinz had contracts with 43 tomato growers, some who had been growing for the company for decades. Heinz had said it was closing the Leamington plant by June.

Krueger says, the processing vegetable board does not yet have an agreement with Highbury Canco on prices and other matters. “It’s a bit of a work in progress right now. There has been some talk back and forth but I think they (Highbury Canco) are caught up in other stuff right now.”

He says ideally an agreement with the Ontario Processing Vegetable Growers should be in place before the company signs up the growers. Farmers will be starting tomato planting in about three weeks. “My understanding is they have plants in the greenhouses so plants are started and that’s good,” he notes.

Ken Hamm, board member with the Ontario Processing Vegetable Growers, had previously been growing tomatoes for Heinz but he has not been contacted by Highbury Canco.

Asked if he still planned to grow tomatoes, Hamm said “No because there’s no one else to grow for.”

In November 2013 the H.J. Heinz Company of Canada announced it was closing its 105-year-old facility in Leamington by June. But then in February, the company announced it signed a letter of intent with Highbury Canco Corporation, a consortium of Ontario-based investors and current managers at the plant, for it to buy the plant, the land it sits on and equipment to manufacture, and co-pack for Heinz in addition to manufacturing for a private label. Highbury also has the option to create its own brand. Highbury will be mainly making tomato juice, beans and other products but not ketchup. BF