Vegetable sector performance<\/p>\n
The Ministry for Primary Industries\u2019 latest Situation and Outlook for Primary Industries report gives some insight into New Zealand\u2019s fresh and processed vegetable sector in the year to June 30, 2025.<\/p>\n
Export revenue for New Zealand\u2019s overall vegetable sector rose 2% to $735 million after a slowdown in the previous 2023\/24 season, despite price pressures throughout the year.<\/p>\n
Breaking that down with data from the Fresh Facts 2025 report by industry organisation United Fresh, fresh vegetable exports equated to roughly $275m with $469m of processed\/prepared vegetable exports.<\/p>\n
In comparison, New Zealand imported $32m of fresh vegetables in the financial year ended June 30, 2025.<\/p>\n
The top four export markets for fresh and processed vegetables remained the same as in 2024. <\/p>\n
Australia and Japan were the consistent top two markets, with China and the European Union third and fourth. Combined, these markets made up 58% of fresh and processed vegetable export value in the year to March 31, 2025.<\/p>\n
In total New Zealand exported $343.2m worth of fresh and processed vegetables (excluding potatoes) over the period, with peas the largest segment at roughly $163.6m.<\/p>\n
Of the produce grown in New Zealand, around 80% of it is consumed locally. <\/p>\n
Despite most of the produce found on grocers\u2019 shelves being grown and sold here, local processors like Wattie\u2019s and McCain continue to feel the pinch.<\/p>\n
Wattie’s New Zealand managing director Andrew Donegan said rising energy, commodity and labour costs all contributed to the companies decision to shut several plants.<\/p>\n
Are we spending more on vegetables?<\/p>\n
When looking at domestic demand, the Situation and Outlook for Primary Industries report details that retail spending on fresh vegetables reached $1.3 billion in New Zealand.<\/p>\n
That demand appears to counter Wattie\u2019s managing director Andrew Donegan<\/a>, who said that the company had experienced volume declines of around 20% over the last five years.<\/p>\n However, data from Stats NZ gives some insight into frozen vegetable demand in New Zealand, although the figures are only as recent as 2023.<\/p>\n Based on the Household Expenditure Survey from Stats NZ, total weekly expenditure on frozen vegetables and other preserved or processed vegetables by all households equated to just over $6m, or roughly $312m a year.<\/p>\n This increased by 32.6% between 2019 and 2023, where it had remained relatively steady for the previous nine years. <\/p>\n The average weekly spend per household on frozen vegetables and other preserved or processed vegetables equated to just $3.10 a week, up 19.2% between 2019 and 2023.<\/p>\n The aggregate annual expenditure by all households on vegetables and other preserved or processed vegetables was $316.85 per year, up 32.6% between 2019 and 2023.<\/p>\n When looking specifically at frozen peas, the proportion falls steeply.<\/p>\n Total weekly expenditure by all households on frozen peas equated to just $260,000 \u2013 the lowest food item of all measured by Stats NZ.<\/p>\n As for aggregate annual expenditure by all households on frozen peas, that equated to just $13.57 per year \u2013 once again the lowest item of all measured by Stats NZ.<\/p>\n What the data shows is a steep increase in expenditure on frozen\/processed vegetables between 2019 and 2023, matching a steady rise in price for products over that period.<\/p>\n The supermarket duopoly supported the findings but gave different responses as for demand.<\/p>\n A spokesperson for Woolworths confirmed that sales of frozen vegetables (including Woolworths\u2019 own brand) have been declining, and that about 45% of its brand frozen vegetables is grown in New Zealand.<\/p>\n A spokesperson for Foodstuffs said that customer demand for staple frozen vegetables like peas, beans and corn has been relatively steady over time, and New Zealand-grown options continue to be the first choice for many shoppers. <\/p>\n Most frozen vegetables sold in its stores, Pak\u2019nSave and New World, are grown in New Zealand. <\/p>\n Manufacturing impact<\/p>\n Key to the argument made by Wattie\u2019s and McCain behind their decisions to close certain plants was the rising cost of manufacturing in New Zealand.<\/p>\n