Potatoes: distribution and processing

Abstract

Part 1 of this report presents the findings of a study of the distribution costs and margins involved in the potato industry. Only the main crop potato distribution channels from grower to retailer are examined. Distribution costs include such things as transport, packaging, waste and overheads. Distribution margins allow for the differences between buying and selling prices at each level, and include distribution costs and profits. The objectives of the study were to indicate which channels are more cost efficient, and to suggest strategies to improve the distribution channels in order to attain better returns to growers. Part 2 of this report presents the findings of a survey of New Zealand potato processors. The objectives of the study were to obtain information on the processing sectors' requirements and to forecast trends so that growers are better able to meet these requirements and are aware of the processing sector's potential.