New Zealand Potato Growers Focus on Converting High Yields into Greater Market Value

New Zealand potato growers are focusing on turning higher yields into greater value as they navigate fluctuating markets, rising costs, and increasing climate pressures, according to Potatoes New Zealand Chief Executive Kate Trufitt. She said the global potato sector is facing a mix of challenges and opportunities linked to production volumes, shifting demand, climate variability, and evolving consumer and export trends.

Kate Trufitt, Chief Executive of Potatoes New Zealand:

"New Zealand's sector is responding by prioritising value creation from high yields, alongside responsible environmental and market management."

Like other agricultural commodities, grower returns are strongly influenced by supply and demand. Record crops can place downward pressure on prices when demand and market access do not expand at the same pace. Processing contracts provide greater price stability, while open-market potatoes typically feel price pressure first.

Despite larger harvests, higher production costs continue to squeeze margins, meaning increased yield does not automatically translate into lower farm-gate prices.

Kate Trufitt:

"Short-term volume growth can soften prices, but efficiency and market development protect returns in the medium term. Our focus is on turning additional volume into value through exports, processing, product innovation and new market opportunities."

Production structure remains stable

Fresh Facts data shows New Zealand produced 518,282 tonnes of potatoes last season, split across seed (4%), table (40%), and processed (56%). Variations are driven mainly by seasonal and market conditions rather than structural industry shifts.

The processing sector continues to support technology investment, while the table market underpins regional employment and domestic food security. High-quality seed remains critical for yield and disease management.

 

Weather and resilience challenges

Variable weather conditions, including waterlogging, disease pressure and delayed harvesting, are increasingly affecting yield and quality. Storm events and a poor summer season have also damaged infrastructure and reduced output in some regions, particularly in the South Island.

Kate Trufitt:

"While potatoes are a resilient crop, they are increasingly exposed to the risks of extreme weather events, prompting ongoing risk-management efforts by growers and industry bodies."

Driving higher yields on less land

New Zealand growers achieve yields of 50–80 tonnes per hectare, supported by a temperate climate, fertile soils, strong agronomy and certified seed standards. Advances in genetics, precision farming, crop rotation and pest management continue to lift productivity while reducing land use.

Innovations such as hydroponic systems are also being explored globally, while urban expansion is increasing pressure on high-quality cropping land. The industry continues to advocate for the protection of prime soils and balanced spatial planning to safeguard future production. Overall, the sector’s strategy centres on improving efficiency, strengthening markets and converting volume gains into long-term value rather than relying solely on production growth.