Approximately 2,500 employees. TPP estimated to cost $25 Million - PowerPoint PPT Presentation

NZ Potato Industry • Economic and Business Impacts on Industry • 170 Growers • Approximately 2,500 employees. • TPP estimated to cost $25 Million per year. • BCA would represent a significant savings to industry. Reducing TPP pest pressure in North Island to similar in South Island would save $5-$10 million dollars. • Total Value of Potato Industry is $814 Million (revised figure) • Processors include McCains, Talleys, Mr Chips, Bluebird, ETA etc. www.morrisonconsulting.co.nz 1

NZ potatoes production area Potato Growing Areas Potato Production Area Seed Area(ha) Brushed Area(ha) Washed Area(ha) Process Area(ha) 11,717 10,670 10,605 10,591 10,534 10,329 10,290 10,214 10,179 9,952 6,901 5,927 5,848 5,883 6,073 5,551 5,631 5,659 5,609 5,472 1,175 1,368 1,309 1,363 1,361 1,142 1,594 1,370 1,411 1,443 2,374 2,091 2,207 2,030 1,754 2,299 1,902 2,262 1,920 1,922 1,405 1,358 1,284 1,260 1,242 1,194 1,156 1,182 1,057 1,077 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 Source: Annual Potato Survey www.morrisonconsulting.co.nz 2

Two thirds of New Zealand’s potato harvest goes to processing, making this a key priority for the industry to maintain scale 2015 NZ Potato Industry by Volume Total Seed Brushed Washed Process Area (ha) 10,179 1,405 1,754 1,411 5,609 Saleable Yield (MT/ha) 18 46 46 55 Production (MT) 479,400 25,300 80,700 64,900 308,500 17% 5% 13% 65% 30% 50% 15% Seed (MT) Export 400 Crisps (MT) Frozen / Fries (MT) Domestic Sales 25,000 Raw Potatoes 67,000 Raw Potatoes 241,000 Total 25,400 5% of Potatoes Grown Domestic Mfg 13,400 Domestic Mfg 140,000 Import 900 Import 15,700 Total 14,300 Total 155,800 Table Potatoes (MT) Export 26,500 Export 2,500 Export 59,600 Domestic Retail 105,000 Retail 11,900 Retail 24,000 Foodservice 14,000 Total 14,300 Food Service 72,200 Total 145,500 Total 155,800 15% of Potatoes Grown 50% of Potatoes Grown 30% of Potatoes Grown www.morrisonconsulting.co.nz 3

The final value of the NZ potato industry is approximately $814 Million of which processed product accounts for 65% 2015 NZ Potato Industry by Value Total Seed Brushed Washed Process Area (ha) 10,179 1,405 1,754 1,411 5,609 Saleable Yield (MT/ha) 18 46 46 55 Production (MT) 479,400 25,300 80,700 64,900 308,500 17% 5% 13% 65% 30% 50% 15% Seed (‘000 NZD) Export $400 Crisps (‘000 NZD) Frozen / Fries (‘000 NZD) Domestic Sales $24,000 Export $16,300 Export $74,100 Total $24,400 Retail $157,000 Retail $70,800 3% of Final Value Total $173,300 Food Service $213,500 Total $358,400 Table Potatoes (‘000 NZD) 21% of Final Value 44% of Final Value Export $19,900 Domestic Retail $210,000 Foodservice $28,000 Total Industry Value: $814 Million Total $257,900 32% of Final Value Note: Total Industry Value based on final sales value in New Zealand (or FOB) www.morrisonconsulting.co.nz 4

NZ potato export receipts NZ Potato Exports Insights $ million FOB Value, year ended June 30 • Total export values have been in Frozen Fries Crisps Fresh Potatoes Seed Potatoes (Fresh) Other a range from $110 million to $117 million over the past four years $122.3 $117.4 $2.3 $112.9 $110.5 $2.6 $2.1 $16.1 $2.5 $15.2 $19.9 $15.5 $16.9 $12.5 $15.5 $16.3 $86.9 $86.3 $76.6 $74.1 2012 2013 2014 2015 Source: Statistics NZ www.morrisonconsulting.co.nz 5

Stuart Wright – Potato Seed & Fresh Grower • Introduction to my business – Size – No of employees – How Psyllid has affected my operation. – Costs before Pysllid vs Costs after Pysllid. • How a Biological Control Agent would assist my business. – IPM – Early Season Control. www.morrisonconsulting.co.nz 6