SPC to cut production of Aussie breakfast favourite – as Coles and Woolworths are called out

Australia’s largest cannery will cut production of canned fruit as cost-of-living pressures push consumers to import at low costs.

SPC in Shepparton in northern Victoria has told fruit growers it will cut peach and pear consumption by more than 40 per cent next season, citing fierce competition from foreign produce.

‘The average Australian household is under pressure and customers are purchasing alternative products imported from countries such as… South Africa And Chinawhere production costs are lower,” an SPC spokesperson said in a statement.

“As a result of this reduced demand, we have made the difficult decision to reduce our peaches and pears orders for the upcoming season.”

SPC expects the volume of peaches and pears to normalize in 2026.

SPC in Shepparton in northern Victoria (pictured) has told fruit growers it will cut peach and pear consumption by more than 40 per cent next season, citing fierce competition from foreign produce

The purchase of apricots, plums and apples remains unchanged.

Victorian Fruit Growers service manager Mick Crisera said while the announcement, made at a supply meeting last month, gave growers time to make decisions about the upcoming season, they were still caught off guard.

“Twelve to 18 months ago the cannery was talking about encouraging growers to plant more,” Mr Crisera told AAP.

“Now they won’t be able to sell their shares for 18 months.”

Growers are now faced with difficult decisions about whether to prune or remove their trees.

“It just depends on which farmers want to take a chance and still grow until the end of the season, hoping (SPC) needs more,” Mr Crisera said.

Tariffs were needed to protect Australian farmers as cost pressures pushed consumers towards cheap imported products, he added.

“I don’t think many consumers realize that many of those Select, Coles, Aldi or IGA branded products, even though they say they are (a) community business, are actually a product from China or South Africa,” said he. Crisera said.

SPC expects the volume of peaches and pears to normalize in 2026

‘There needs to be some form of protection for Australian growers.

“Every other country in the world seems to want to protect its growers, except Australia.”

The ‘fruitbowl’ region of the Goulburn Valley has faced difficult conditions in recent years, with rising costs, tight margins and crops lost or damaged by extreme weather.

“It was a tough call,” Crisera said.

“We need the Australian public to be as aware as possible of the challenges farmers face.”

Jeremy Griffith, member of the National Farmers Federation horticulture council, said he was still disappointed with the amount major supermarkets were importing from abroad.

“It’s not a huge surprise that we’re seeing the reputation of the big supermarkets collapse,” Griffith told AAP.

‘Growers cannot get a fair return on their products, there are growers who report that they have not had a price increase for fifteen years.

“That’s the level of dominance of Coles and Woollies in this country.”

Mr Griffith said that the difficult environment for farmers was threatening national food security.

He hoped the federal government’s review of the major supermarkets could get them a better deal.

According to the Australian Manufacturing Workers Union, workers at the cannery have not been given any indication of possible job losses.

“There has been no consultation about this announcement,” union organizer Candice Tierney told AAP.

“That’s not throwing us all under the bus, but we are a little disappointed that they haven’t made an offer to employees about what this looks like.”