![SPC said its decision to reduce its fruit intake from farmers was forced by the ongoing cost-of-living crisis. Picture supplied. SPC said its decision to reduce its fruit intake from farmers was forced by the ongoing cost-of-living crisis. Picture supplied.](/images/transform/v1/crop/frm/230597393/785a207f-d1d2-42b8-b753-163f7e7a4767.jpeg/r0_219_4288_2630_w1200_h678_fmax.jpg)
Fruit farmers are considering pulling out or pruning back trees, dropping fruit on the ground or pivoting to other plantings after a "shock" SPC Global announcement it was reducing its canned peach and pear intake by 40 per cent.
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SPC said in a statement its decision had been forced by the ongoing cost-of-living crisis and under pressure households buying alternative products imported from countries such as South Africa and China, where the cost of production was much lower than in Australia.
All of SPC's processed peaches and pears - whether they are for private label or branded products - are fully-sourced from Australia.
"As a result of this reduced demand, we have made the difficult decision to reduce our orders of peaches and pears for the upcoming season," the statement said.
"Growers have been advised about changes to our sourcing of peaches and pears to give them as much notice as possible ahead of next season."
The company said its sourcing of apples, apricots and plums would not change, while it hoped the pear and peach volumes would return to normal levels in 2026.
![The Goulburn Valley has a rich fruit growing heritage. File picture. The Goulburn Valley has a rich fruit growing heritage. File picture.](/images/transform/v1/crop/frm/39XqhrgY6riNnQBs6VEtc8R/4236dc70-29f3-4ee4-8bde-081bc6b3eeff.jpg/r0_0_1370_913_w1200_h678_fmax.jpg)
"SPC has been proudly processing locally grown fruit in the Goulburn Valley for more than 100 years.
Fruit Growers Victoria grower services manager Michael Crisera said farmers were facing a year with heavily reduced income after a torrid COVID-era and prevailing economic conditions dragging on profitability.
He said growers had been hearing rumours of a reduction for some time, but were "shocked" at the dramatic reduction when SPC announced the plan at a supplier meeting on May 23.
This year's harvest is currently in storage or being preserved.
Peach farmers will be the hardest hit with the 2025 intake to be reduced from 16,000 tonnes last year to 10,000 tonnes with pears down to only 4000 tonnes.
The change will impact farmers differently depending on the structure of farm businesses, those with mixed plantings will likely see around a 40 per cent reduction while those dependant on SPC are facing a wipeout.
Mr Crisera said, for example, that farmers specialising in William Bartlett pears and canning peaches will be most adversely impacted.
However, there will be limited domestic and export pivot market options for particularly pear growers but these will far from cover the loss.
"It is not a good time to be a grower in the Goulburn Valley at the moment and now they are working out how to minimise costs for the next growing season and in some cases trying to live with no income or a reduced income," he said.
![SPC remains a major employer in Shepparton. File picture. SPC remains a major employer in Shepparton. File picture.](/images/transform/v1/crop/frm/39XqhrgY6riNnQBs6VEtc8R/9a4b8722-1c8e-40ae-bfb9-2720fa1e6d8e.jpg/r0_0_3307_2418_w1200_h678_fmax.jpg)
"It is a difficult decision for growers because they are looking to normalise supply in 2026. They are making a decision whether to continue with the existing block or excavate it."
Growers will also need to make a decision quickly with the Goulburn Valley entering pruning time, the situation being compounded in that the trees are permanent plantings.
Mr Crisera said some farmers might also push on with production in the hope that the intake will be raised, risking a massive loss of income and potentially throwing fruit on the ground.
He also said that Australian shoppers can help flip the script, with a 16,000 tonne peach crop converting to 14 million 800g cans, "there are about 28m people in Australia and if every second person bought one tin this year it would clear the stock".
Mr Crisera said growers were now needing to hear the long-term plan from the cannery so they could decide their long-term future.
"Two years ago and during COVID the cannery couldn't get enough Australian grown produce and within 12 months now they've got too much. I'd imagine they're losing market share to the imports," he said.
"The cost of doing business is putting a lot of pressure on our growers. They are a resilient mob and these are testing times and we hope that they all get through the next period, after being through one of the toughest periods in history."
A Coles spokesperson confirmed that while it offers a range of product price points, "we are seeing value-conscious customers switching" to own brand alternatives across a range of categories.
"Where we are able to do so, we source canned goods from Australia - for example our Coles branded canned pears and peaches are Australian sourced," he said.
![Fruit farmers canned by SPC amid cost-of-living crisis Fruit farmers canned by SPC amid cost-of-living crisis](/images/transform/v1/crop/frm/39XqhrgY6riNnQBs6VEtc8R/90e71f79-6b96-4293-9c29-1922668943d0.jpg/r0_123_3264_2277_w1200_h678_fmax.jpg)
"We are working closely with our suppliers to increase the volume of locally grown fruit in canned range - while also maintaining availability for our customers."
Meanwhile, a Wooworths spokeswoman also said sales of own brand tinned fruit products had surged in the past year as customers "seek out value".
"Continuity of supply is an important consideration for our sourcing and Woolworths has sourced some imported fruit to manage demand over the last few years," she said.
"We remain committed to supporting local growers, and have worked with SPC this year to introduce three new tinned fruit products with locally sourced fruit back into our Own Brand range, including Peach Slices.
"We provide country of origin labelling on all our own brand food to help customers make an informed choice."
A LONG HISTORY
SPC has been proudly processing locally grown fruit in the Goulburn Valley for more than 100 years but
Australia's last big fruit manufacturer has been fighting a losing battle to stave off cheaper overseas competition after people power saved SPC when it faced extinction a decade ago.
The new SPC Ardmona cannery at Shepparton, re-opened after a huge injection of cash in 2016, still relies heavily on centuries-old technology which still works pretty well with some expensive overhauls, include robotic help.
SPC was launched by a group of fruit growers in the Goulburn Valley in 1917 as a co-operative they named the Shepparton Fruit Preserving Co.
Over more than a century it has survived in good seasons and bad, sometimes opening new factories in neighbouring towns, and then closing them.
Its biggest test came in 2014, when SPC was in danger of closing with more than 2000 jobs at risk.
![Then Victorian Premier Denis Napthine with local MP Wendy Lovell celebrating saving SPC back in 2014. Picture supplied, Then Victorian Premier Denis Napthine with local MP Wendy Lovell celebrating saving SPC back in 2014. Picture supplied,](/images/transform/v1/crop/frm/230597393/ed6c3184-d541-479e-bf6b-5df56e2d618a.jpg/r0_0_1535_1009_w1200_h678_fmax.jpg)
The Victorian Government controversially handed over $22 million, while then owner Coca-Cola Amatil found $78 million and a business rescue strategy, aptly called Project 100, was born.
The former farmer co-operative, SPC, at Shepparton, Kyabram and Mooroopna, was on its knees.
In 2014, then SPC general manager Peter Kelly said sales of jams, baked beans, tinned tomatoes and fruit jumped 50 per cent in the weeks after consumers learned of its predicament.
After long years of fighting against cheap Italian tomatoes, SPC was back in the game.
It was people power which saved an Australian icon and not just a government handout, SPC's Mr Kelly said at the time.
The company invested heavily in new machinery and new packaging to provide a superior product with locally grown produce.
SPC was said to have committed to return the government's money if the Shepparton factory was to close within five years.
At the time, the local Shepparton council said SPC was directly and indirectly responsible for 4000-5000 jobs in the region.
Canning technology was invented in the mid-19th century to preserve processed food in an airtight container, and after the gold rush, Victoria invested heavily in irrigation schemes to boost fruit exports.
As rack drying allowed Sunraysia's grapes to reach its European markets, canning took the Goulburn Valley to the world.
Coca-Cola Amatil sold SPC in 2019 for $40 million to Shepparton Partners Collective, now known as SPC Global Limited who said it had implemented strategies for global growth.