Strong local market holds the line for NZ spuds

In its latest annual report, PNZ chief executive Chris Claridge says the NZ potato sector now has an overall value of $1.16 billion - with 58% growth in domestic value since 2013.

"This is a pleasing result, as we have achieved our target of a 50% increase in domestic value, 4 years early," he says. "It took us just 7 years to increase 50% rather than the 12 years planned for."

Claridge points out that 67% of this NZ crop is processed and says this is the reason the industry's value has rapidly risen in value.

"We're very pleased to see that overall marketable crop yield has remained the same as the previous year, indicating consistent agronomic practice." However, he adds that growers saw a 5% decrease in farmgate value over the 2020 year and, despite a drop in the crop produced, there was still a rise in value across both export and domestic markets.

"It's fair to say that the pandemic crisis continued to impact our industry in 2020, due to further sporadic hospitality closures and dumping of European fries into our domestic markets," Claridge adds.

"The PNZ tariff application to MBIE was unsuccessful but we continue to voice our concerns where appropriate and using whatever tools available to us."

He adds that the export market has been affected by global disruption to supply chains due to the pandemic, resulting in a 17% drop in NZ exports to the end of December 2020.

"Suspected dumping by foreign firms in our export markets and overseas lockdowns reducing global consumer demand have also played their part in leaving our export value lower than we'd targeted."

Claridge says a key takeaway from 2020 is that a strong domestic market underpins NZ's potato industry.

"It affirms that securing and stabilizing our domestic market share should remain a top priority for PNZ," he explains. "A strong domestic market maintains NZ industry resilience."