Energy has always been a significant input cost in food processing, but in recent years, it has become one of the most volatile. Globally, energy markets continue to adjust following recent shocks, with price instability still flowing through to industrial users. In New Zealand, electricity prices have remained elevated in recent years, influenced by fuel supply constraints, low hydro inflows at key points and increased demand on the system.
For food manufacturers, these shifts are not abstract. They show up directly in the cost of freezing, processing and storing products. In a sector where margins are often tight and export pricing is competitive, even modest increases in energy costs can have a noticeable impact.
Energy intensity in food processing
Food product manufacturing is one of New Zealand’s more energy-intensive industries. The Energy Efficiency and Conservation Authority (EECA) highlights refrigeration, hot water and steam generation as the largest energy users across the sector. In operations handling frozen produce, refrigeration alone can account for 30% of total electricity consumption.
EECA notes opportunities to improve efficiency across existing systems that were not designed with today’s energy prices in mind. As energy prices rise, these opportunities are becoming harder to ignore.
Rethinking refrigeration and cold storage
Cooling systems are under renewed scrutiny as manufacturers find value in targeted upgrades. Improvements such as optimised compressor performance, upgraded insulation and more responsive temperature controls can reduce unnecessary load.
Key opportunities include improving insulation, optimising compressor performance and integrating heat recovery where possible. Further, from EECA’s 2025 industrial refrigeration guidelines, addressing unnecessary overnight refrigeration loads is a key operational improvement that can reduce energy use by up to 20%.
For exporters, efficiency gains in refrigeration also support consistency. Maintaining stable temperatures remains critical for preserving the quality of frozen fruit and vegetables across long transit times.
Recovering wasted energy
Alongside reducing demand, there is growing attention on reusing energy that would otherwise be lost. The International Energy Agency (IEA) highlights industrial heat recovery as a key opportunity, noting that large volumes of excess heat remain underutilised across sectors.
In food processing, where heating and cooling processes often operate side by side, this opens up practical applications. Heat generated during one stage of production can be redirected to support another, such as water heating or cleaning.
Changes are often incremental, but over time they contribute to meaningful reductions in energy use.
Smarter use of energy
A recent energy market update from the Ministry of Business, Innovation and Employment (MBIE) pointed to increasing price variability across different times of day, particularly during winter demand peaks. For manufacturers with flexible processing windows, this creates an opportunity to rethink scheduling in a way that aligns with lower-cost energy periods.
There is also a growing focus on reducing unnecessary load. Equipment that continues running between production cycles, or systems that are not closely monitored, can contribute more to energy use than expected. Addressing these smaller inefficiencies often requires detailed operational insight rather than major capital investment.
Why it matters
Energy is now a more active factor in how food manufacturing businesses operate. It influences production costs, storage requirements, and ultimately pricing in export markets.
For processors like Reid Produce Co., where temperature control and consistency are central to delivering high-quality produce, managing energy use is closely tied to maintaining reliability. As markets continue to evolve, steady improvements in efficiency will play an important role in protecting margins and supporting long-term supply.
Interested to find out how we can meet your fresh, frozen and prepared fruit and vegetable requirements? Contact us to learn more about how we can help.
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