Land Use Fact Sheet
Carrots
Carrots are a versatile crop grown in most regions of New Zealand. Ohakune is famous for both the quality of their carrot crop and their giant carrot statue, but our main growing region is actually Canterbury, followed by Auckland and Southland. Most of our carrots are sold locally, with about 20% of our total crop being exported.
Overview
Regions
Carrots are grown from Auckland to Southland. Canterbury is our main growing region.
Growing conditions
Carrot crops are best suited to flat to rolling land with LUC class 1-4 land. They need deep soils.
Climate
Carrots grow best when daytime temperatures are consistently mild and the nights are cold.
Commercial scale
At least 5 hectares. Bigger tends to be better, with larger areas giving better profits.
Getting started
You can grow under contract with a processor, sell directly to a wholesaler or lease your land.
Skills / employment
You’ll need to understand the technical processes of preparing, planting and monitoring the crop.
Regions
Get a report on your whenua
Enter the details of your whenua into our search to create a downloadable report showing information about the environment, economy, and climate in your region — and the potential that creates for development.
Commercial scale
You need at least 5 hectares to be commercially viable. Larger areas have lower per-hectare costs and other benefits of scale, so are usually more profitable. If you are purchasing machinery and developing a packhouse you'll need access to much more land in order to make a good profit.
Getting into the industry
The three main avenues into the commercial carrot industry are:
- leasing your land to another grower
- contracting with a processor, or
- selling on the open market via a wholesaler.
Many growers also sell some of their crop to people at local markets and from roadside stalls. Growers get a higher price, but it is not usually possible to sell your whole crop this way.
Leasing your whenua
Your whenua can be leased to someone who is already growing in your area. Growers are often keen to increase their land area by leasing. They can get better economies of scale and have more options when they are working out their crop rotation.
Leasing is hands-off, so you do not need to provide any input into the crop.
The market rate for a lease on land that can support carrot production is usually $1,000-$2,000 per hectare per annum. Factors like location, soil, and the condition of the land will determine the rate.
The landowner would usually charge the lessee for the use of water, if irrigation is provided.
The lease contract will include information about:
- how long the lessee can use your land
- what they're allowed to use it for, and
- how they must maintain facilities and look after the land.
Take advice from qualified, experienced advisors before you commit to leasing your whenua.
Contracting to a processor
A contract is an agreement with a processor like Watties or McCain foods. The contract is signed before you plant your crop. It will tell you:
- what variety to plant
- when it needs to be harvested, and
- how much you will be paid per tonne.
Your contract may include conditions about the quality of the crop and how much the processor will take.
It will also say who is responsible for harvesting and handling the crop after it has been harvested, because some processors will do this themselves.
Talk to Process Vegetables New Zealand for advice before you get started.
Process Vegetables New Zealand
Open market
The open market means selling to a wholesaler, who will on-sell to supermarkets, shops and other retailers.
Wholesalers do not usually offer supply contracts. They will purchase the product:
- when it is available, and
- for a price that is set by market conditions at that time.
It is still important to get in touch with the wholesaler before you plant, to confirm that they will take your crop when it’s ready.
Talk to Vegetables New Zealand to find out about support they offer to growers considering selling to a wholesaler.
Crop rotation
Rotate carrot crops with other crops to manage disease and support soil health. It's best not to grow them in the same field two seasons in a row.
Equipment
You do not need any equipment if you are leasing your whenua to another grower, because you will not be involved in growing the crop.
If you are growing your own crop, you will need access to specialised planting equipment. You will also need access to specialised harvesting equipment unless you have a contract with a processor who is managing your harvest. It is important to check:
- there is equipment available in your area
- the costs of using it, and
- scheduling requirements of the equipment operators.
Skills and employment
The grower needs to understand the technical processes of preparing, planting and monitoring the crop as it grows. This is likely to include:
- handling dangerous substances, including sprays and fertilisers
- operating equipment, including tractors and specialised heavy machinery, and
- understanding compliance obligations, including nutrient management, the Food Act and New Zealand Good Agricultural Practice (NZGAP).
Growers will also manage the harvest and post-harvest activities such as cleaning and grading if they are selling to a wholesaler.
If selling to a processor, the contract will outline the grower’s responsibilities. The processor may carry out harvesting and post-harvest activities, or the grower may need to do this. Make sure you have access to equipment and other resources that you may need to meet the requirements of the contract.
Visit Vegetables NZ to find out about the support they offer to growers.
Compliance
Levies
Growers are supported by Horticulture New Zealand, Vegetables New Zealand and Process Vegetables New Zealand.
Each organisation collects compulsory levies under the Commodity Levies Act 1990.
In 2018:
- Horticulture New Zealand collected $0.14 per $100 of sales.
- Vegetables New Zealand collected $0.30 per $100 of domestic fresh product sales and $0.20 per $100 of export fresh product sales, and
- Process Vegetables NZ collected $0.80 per $100 of sales.
These levies can change, so check their websites to make sure you have the latest information.
Horticulture New Zealand membership levy
Vegetables New Zealand grower levy
Process Vegetables NZ grower levy
Food safety
All growers must meet the requirements of National Programme 1 under the Food Act 2014. The requirements include rules about how the crop is handled, managing spray residue, and withholding periods. This to make sure the carrots you’re supplying to the market are safe to eat.
New Zealand Good Agricultural Practice (NZGAP)
NZGAP is a system that helps growers to keep up with compliance requirements, including food safety requirements. Some retailers and wholesalers will only take crops from an NZGAP certified supply channel. Becoming NZGAP certified:
- gives you confidence that you're meeting compliance requirements
- makes it easier to find out when regulations have changed, and
- ensures your product meets buyer requirements.
Some wholesalers hold NZGAP certification on behalf of the grower. Check with the company that you are supplying.
Council regulations
Many councils require consents for access to irrigation water and for other activities related to changing land use.
Speak to your local council before investing in any detailed planning or development work to ensure you are aware of any consents or permits needed to start growing carrots on your whenua.
Meeting council compliance obligations
National policy statement for freshwater management (NPSFM)
The National Policy Statement for Freshwater 2020 gives local authorities direction on how they should manage freshwater under the Resource Management Act 1991. As such, some local authorities require growers and farmers to create a Farm Environment Plan (FEP). Make sure you're familiar with the FEP expectations in your region. Check with your local council about the requirements for your whenua or planned development.
Even if your region doesn't yet require an FEP, it's good practice to put one in place for your whenua as part of your business plan. The Foundation for Arable Research (FAR) provides templates you can use to create an FEP.
Growing conditions
Land characteristics
Like most vegetable crops, carrots are best suited to flat to rolling land and LUC classes 1-4. They need deep, well drained soils to grow the straight, smooth roots that achieve the best price for the grower.
Stony, dense or poorly-drained soils will result in poor yields and few top-quality carrots, but the crop may be suitable for less-profitable uses such as processing or juicing.
Planting
Carrot seeds are planted close to the surface and in rows about 30-50 cm apart. Each variety has slightly different requirements, so seek experienced, qualified advice to ensure your crop is planted at the right depth, spacing and density.
Check regularly for weeds, pests and diseases while your crop is growing. This will help to prevent damage to your crop quality and yield.
Warmer regions plant from March to September and harvest between October and January. Cooler regions plant from September to December and harvest from January to October. This means that fresh carrots are available in shops year-round.
Carrots will keep growing until frosts begin. In cold areas this means that carrots can be left in the ground until needed, so the grower can decide when to supply the market in order to get the best results. In other areas, leaving harvest for too long will result in a poor-quality crop.
Nutrients
A 100 tonne per hectare crop will remove about 170 kg per hectare of nitrogen, 35 kg per hectare of phosphorus and 300 kg per hectare of potassium. Test your soil before designing your fertilizer programme to make sure you are providing the best support to your crop without unnecessary leaching.
More information
Process Vegetables NZ has published guidelines for establishing your carrot crop and understanding nutrient requirements.
The Vegetable Research + Innovation Board has also carried out research projects on growing and marketing carrots. Their publications can be searched on their website. You will need to contact them to request access to the full content of each paper.
Climate
Carrots develop the best flavour and colour when daytime temperatures are between 10oC - 20oC. Cold night-time temperatures are needed to grow the best quality carrots.
Water
Carrot crops need careful water management. Seeds that don't have enough moisture will not germinate. This is an important risk to manage, because seeds are planted close to the surface and can quickly dry out. You will need to irrigate your whenua if it doesn't get enough rain, especially between planting and germination.
Make sure that water droplets from irrigation don’t disrupt the seeds or cause a hard crust to form when the soil dries out. These issues can also stop seeds from germinating.
Market
Nearly 2,000 hectares of carrots were grown in New Zealand in 2018. Just over half of the national crop was sold fresh to the open market. The rest was used for processing and juice.
Domestic sales of fresh carrots in 2018 were worth $40 million. Processed carrots on the domestic market generated $16 million.
Carrot juice exports are worth around $28 million and fresh carrots earn around $7 million to $8 million in export earnings every year.
Future industry
Consumers recognise carrots as a healthy, low-cost option. Domestic demand for New Zealand carrots is set to remain strong.
The steady encroachment of urban developments on farmland is reducing the amount of land available for arable crops like carrots, but the outlook for this crop continues to be positive.
Operational costs
The costs for growing a carrot crop vary slightly by region depending on contractor costs and availability of equipment.
Indicative costs for a crop in the 2019-2020 season were around $6,000 per hectare, based on the following approximate values:
- $2,400 per hectare for seed
- $2,100 per hectare for planting, management and cultivation costs during the growth period, and
- $1,400 per hectare for harvesting costs.
Grower returns
Yield depends on variety and growing conditions.
The average gross yield for commercial hybrid varieties of fresh carrots is around 70 tonne per hectare. Of that, around 25 tonne will achieve the grade 1 price.
The average grade 1 price to the grower for fresh carrots on the domestic market in the 2017/2018 season was $1.16. This provides an approximate gross income per hectare of $29,000 from grade 1 carrots, plus any additional income that may be obtained by selling to processors or juicers.
The average yield for process crops is around 96 tonne per hectare after grading. The price to the grower is set down in the contract with the processor. In the 2017/2018 season this figure was up to $0.25 per kg, providing an approximate gross income of $24,000 per hectare.
Seek advice
Seek advice early, before you invest in any design or development.
Talk to your local Te Puni Kōkiri office to see how they can support you through your decision-making process. They will be able to provide advice and find out whether your project qualifies for funding.
Talk to the industry organisations to see what support and resources they may be able to offer to people thinking about growing carrots.
If possible, seek out advice from wholesalers, people who grow carrots in your area and knowledgeable suppliers.
Talk to qualified consultants who operate in your area and who are experienced in carrot growing and sales. They will be able to provide detailed, impartial advice on what will (and won't) work on your whenua.
About this fact sheet
This fact sheet provides general information to help start and inform conversations. It is not comprehensive enough to support detailed decision-making.
The information in this fact sheet has been contributed by AgFirst, Fresh Facts and Te Puni Kōkiri kaimahi. Data that has not been credited in the body of the fact sheet has been sourced from StatsNZ, the Lincoln University Farm Budget Manual vol 40, or provided by the contributors.
You can provide feedback on the content on this or any fact sheet by emailing us at TPKinfo@tpk.govt.nz
