New Zealand Potato Market Now Worth NZD1bn Per Annum
The Potato New Zealand association has recently revealed that it has recorded steady growth in potato volumes and values, with the industry being now worth over an NZD1bn per annum.
“The latest figures in from 2018 indicate we’re holding our own in exports and the value domestically has gone up. It’s a good report, but we would like to lift our export market,” said Chris Claridge, Potato New Zealand’s CEO.
The industry is on target domestically, where it achieved a 37% increase in values from 2013. The strategic goal is to increase domestic market value by 50% by 2025.
According to the association, potato volumes are up because yields have improved across the industry. What’s more, volume has risen, as well as value. People are also eating more chips, according to value charts, and domestic processed volumes are strong with an overall increase in process yields. The estimated annual growth in value is 6%.
The release also notes that the export market has failed to reach its target at the moment. New Zealand is about half the annual rate of growth for export. The industry 2025 goal was to double exports, but it remains to be seen whether this is doable. A drop in export value for fresh/table potatoes to the Pacific Islands, while the volume remains static was witnessed, as well as a reduction in exports of chips, primary due to 2017 variety yields and availability.
On the upside, Potatoes New Zealand writes that the market access for frozen fries is not hindered by any phytosanitary requirements, so the market is adequate, especially due to the drought in Europe. The region has seen gain in the frozen fry values but loss in table values.