Weekend rain has only "dampened down the dust" in the Wairarapa, and onion and potato growers throughout the country are struggling with the dry conditions.

Onion production may be reduced by 10 per cent, and it appears potatoes will also be in scarce supply at harvest time in May-June.

East coast regions of the South Island failed to receive the rain that fell in the north, and concern is growing about the impact on the Canterbury economy.

Canterbury-based transport and contracting company Woodley's said the need for casual workers had dropped by half compared to last year and in some areas harvesting, silage and transport had completely stopped because there had been no growth due to the lack of water.

Hort NZ business manager Matthew Spence said yields per hectare of onions had been revised downwards. "Production could be reduced by 10 per cent. The dry conditions will have an effect on the size of the bulb. Production is determined by irrigation, with 100 per cent of the South Island usually full irrigated but they are now on restrictions," Spence said.

Exports would also be affected. Onions are New Zealand's most valuable vegetable exports, worth on average $100 million a year over the past 10 years.

Spence said the best markets of the United Kingdom and European Union had good crops themselves last year "so their appetite for New Zealand onions won't be as keen as in recent years".

Source - http://www.freshplaza.com/