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New Zealand: Gas supply could threaten life of tomato industry

When NZ Hothouse built its tomato growing operation 25 years ago in South Auckland, hooking up to the nearby Maui pipeline was a key factor. In an area where most growers were using the dirtier, less efficient coal, natural gas was cutting edge and the company brought in the latest technology from The Netherlands.

"It was the best in show in the world at the time," said managing director Simon Watson. The gas was abundant and inexpensive, and they were told it would last forever.

"Gas was incredibly cheap. Probably about a third of what we're currently paying and obviously a fraction of what we're going to be paying when the price goes up," said Watson. But the very lifeblood of the operation - the thing that keeps the plants warm through winter and feeds them much-needed carbon dioxide - is dying.

Natural gas supplies are running out and as the shortage bites, the rising cost of it is threatening the future of some businesses. It is likely to uproot NZ Hothouse's operation and disrupt hundreds of workers. Watson said it is the toughest problem he's faced in his 31-year career there. But he had no idea of the widespread impact of it until a business leaders' meeting a couple of weeks ago.

Read more at RNZ

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