As we continue our “Key Business Outlooks 2025” series, we talk to Daniel Leighty, Vice President of Sales, Key Technology, about the big opportunities and challenges facing the potato processing industry in the year ahead. This interview highlights the changes that are redefining business strategies for 2025 and what companies are doing to stay ahead.

Potato Business: Considering the market volatility, supply chain disruptions, energy costs, and workforce scarcity, what does this past year look like for your company when you draw the line?

Daniel Leighty, Vice President of Sales, Key Technology: 2024 has been a year of strategic adaptation for Key Technology. While higher interest rates have impacted capital investment decisions particularly in mature markets, we’ve seen strong activity in BRIC countries and continued strength in the potato snack segment. Our focus has been on supporting potato processors as they’ve come to require more fully-integrated solutions and rely increasingly on external engineering expertise, while helping them achieve their product quality and yield goals despite the fluctuations in the quality of harvested crops due to extreme weather patterns.

What are your expectations for next year, keeping in mind the legacy of 2024, but also the current challenges?

Looking ahead to 2025, we anticipate continued evolution in how potato processors approach major projects. When interest rates do ease, we expect to see a wave of capital investments currently on hold suddenly release into the market. This surge will make equipment procurement timing critical for processors to secure optimal project schedules. In the meantime, our focus remains on delivering solutions that provide compelling ROI and helping customers optimize their existing operations.

How do you estimate the market will evolve and what is your priority list for 2025?

We foresee regional markets following different trajectories, as BRIC countries lead in new investments, Western Europe maintains steady growth and North America focuses on strategic opportunities. Meanwhile, in the equipment manufacturing sector, we’re seeing continued consolidation among major suppliers through strategic acquisitions. Our priorities align with these market dynamics including strengthening our presence in high-growth regions, advancing Industry 4.0 capabilities, enhancing our systems for varying regional requirements and expanding our local support infrastructure by establishing more spare parts depots and service centers closer to our customers worldwide.

Where did the growth opportunities come from and what is the most important lesson you have learned in recent times?

A significant growth opportunity has emerged from the industry’s shift toward outsourced engineering expertise. As food processors streamline their internal engineering teams, they’re increasingly looking for equipment suppliers who can provide comprehensive project management and engineering solutions. This evolution has reinforced a principle that has always been central to our success – the importance of adaptability. We’re continuing to evolve our technology, service models and technical capabilities to support our customers’ changing needs.

What strategies are you implementing to maintain a competitive edge in an increasingly saturated market? How do you prioritize your investments versus your R&D efforts?

Our strategy centers on developing unique capabilities that address our customers’ emerging industry challenges. We’re advancing our AI-powered sorting algorithms to handle increasingly variable harvested crop quality, implementing Industry 4.0 solutions for smart factory integration, creating more sophisticated remote monitoring systems and developing predictive maintenance technologies. These innovations help processors maximize up-time and yield while reducing their reliance on in-house technical personnel.

What was unexpected in 2024 and how did it impact your business?

A defining factor in 2024 was the impact of higher interest rates on capital investment decisions. We’ve responded by focusing on delivering more economical solutions while emphasizing technologies that improve yield and efficiency, helping customers justify investments even in this environment. The large fluctuations in the quality of harvested crops have also accelerated demand for our optical sorting and mechanical grading systems, which help ensure consistent final product quality despite changes in incoming product quality.

Which are the most important drivers of change for your business in 2025? How do you plan to prepare for them?

Several key trends are reshaping the potato industry including the mass retirement of experienced in-house engineers, greater variability in harvested crop quality and the acceleration of Industry 4.0 adoption. We’re responding by expanding our engineering services, enhancing our AI-driven adaptive sorting capabilities and developing intelligent systems that can track and analyze products throughout the entire processing line.

What would you like to see happening in 2025 for your stakeholders and business environment (in terms of policy, regulations, and market) in order for your business to thrive more?

The easing of interest rates will be crucial for unleashing the capital investments currently on hold. Additionally, greater stability in international trade policies would help our customers make more confident long-term investment decisions, particularly as we see growth in emerging regional markets.

What is your vision for the industry over the next five years, and how does your company plan to contribute to its growth?

We envision an industry increasingly driven by data analytics and automation, focused on unlocking hidden capacity in existing lines while maximizing efficiency in new installations. One key focus of ours is on further accelerating vertical startup times – by helping processors achieve full production capacity faster on new lines, we can speed up and maximize their return on investment. And, while large processors continue rationalizing their core product lines, creating opportunities for specialized regional players, we’ll support both segments with our best-in-class technologies and global service network.