Potato growers face lower yields and higher costs, putting pressure on prices

Potatoes New Zealand chair Paul Olsen warns prices may stay higher for longer. Photo / 123rf

By Sally Murphy of RNZ

Some potato growers are reporting yields could be down 20% this winter due to bad weather, but it’s still a bit early in the season to know the full impact.

Some growers are harvesting early varieties now, with the main harvest getting underway in a few weeks.

Potatoes New Zealand chair Paul Olsen said his crop in Manuwatū is looking good, but further north in Pukekohe, growers have had a lot of rain.

“What I’m told sort of further north that the yields are back by maybe 20% in some areas, and then the earlier crops in Canterbury, I’m told, are sort of on par,” Olsen said.

“It’s hard to know the full impact of the weather until we get into the thick of harvest in about a month or so.”

Olsen said if the national crop does end up being smaller, prices could remain higher as demand for potatoes has been solid.

“The general rule of thumb is that the prices do ease as the main crop comes on, so it’s sort of hard to gauge, and I’d hate to jump to conclusions so early on in the season, given we’re only in February.

“But yeah, it’ll definitely be one to watch. ”

Pukekohe company Hira Bhana and Co grows 140 hectares of potatoes year-round.

Owner Bharat Bhana said the potatoes have been struggling with the changeable weather.

“When it’s too wet, the roots don’t go down deep enough to go and search for water, then when it goes dry, the roots aren’t prepared, and then they dry out,” Bhana said.

“So, you need to keep the water on. Yesterday, it was 27 degrees during the day and only got down to 20 at night; it’s not cooling down enough - the muggy weather isn’t ideal for getting a decent crop of potatoes.”

Bhana said they aimed to get 45 to 50 tonnes a hectare, but they were getting about 40.

He said if there are fewer spuds around, prices will probably go up.

“But, in saying that, potatoes at the moment, at $1.50 a kilo, or even at $3 a kilo, are cheap compared to anything else.

“Consumers normally complain about $3 a kilo for spuds, but go and get $3 worth of chicken or $3 worth of steak and see what that gets you.”

He hasn’t made money on potatoes for 18 months, so getting higher prices will be good for cash flow.

“Just the other day, Ballance sent us a nice newsletter again, saying that fertiliser price is going up again.

“As our dollar fluctuates and the New Zealand dollar loses value, everything we bring into the country, like fertiliser, chemicals, machinery, it all goes up, so our costs have risen a lot.

“It’s getting to the stage now where growers have decided, well, it’s not worth growing anymore, so they got out of it.”

Bhana said with rising costs, more vegetable growers were leaving the industry - especially in Pukekohe, where some can sell land to developers for hefty profits.

- RNZ