**London**: In an interview, Key Technology’s Daniel Leighty discusses the evolving landscape of the potato processing industry as 2025 approaches, highlighting strategic adaptations, growth in BRIC markets, and the increasing demand for outsourced engineering expertise amidst fluctuating market conditions.
In a recent interview with Potato Business, Daniel Leighty, the Vice President of Sales at Key Technology, provided insights into the challenges and opportunities that the potato processing industry faces as 2024 draws to a close and 2025 approaches. He described the past year as one of “strategic adaptation,” marked by fluctuating market conditions including high interest rates and supply chain disruptions, which have notably affected capital investment decisions in mature markets.
Leighty pointed out that while the mature markets have been cautious, there has been a significant level of activity in BRIC (Brazil, Russia, India, and China) countries and persistent growth in the potato snack segment. He attributed the demand for more fully-integrated solutions and greater reliance on external engineering expertise to help processors manage varying crop quality amidst extreme weather patterns. This has been particularly crucial as processors aim to meet their product quality and yield goals.
Looking forward to 2025, Leighty expressed optimism regarding a potential release of capital investments that have been on hold as interest rates begin to ease. He believes that these investments will make equipment procurement timing critical for processors to optimise their project schedules. The company plans to maintain a focus on delivering solutions that provide compelling returns on investment while also optimizing existing operations for their clients.
Leighty outlined expectations for market evolution, indicating that different regional markets are likely to follow distinct growth trajectories. He noted that BRIC countries will likely lead in new investments, while Western Europe should maintain steady progress and North America will focus on strategic opportunities. Notably, the equipment manufacturing sector is experiencing continued consolidation among major suppliers through strategic acquisitions. In light of these market dynamics, Key Technology aims to strengthen its presence in high-growth regions, advance its Industry 4.0 capabilities, and expand local support infrastructure through the establishment of more service centres and spare parts depots.
Throughout the year, the potato processing industry has seen a notable shift towards outsourced engineering expertise, which has emerged as a key growth opportunity for Key Technology. With food processors streamlining their internal engineering teams, there is a growing demand for equipment suppliers that can offer comprehensive project management and engineering solutions. Leighty highlighted adaptability as a foundational principle that has driven their success, and he emphasised that the company continues to evolve its technology and service models to meet changing customer needs.
In an increasingly saturated market, Key Technology is prioritising the development of unique capabilities to address emerging industry challenges. Their strategy includes advancing AI-powered sorting algorithms, implementing smart factory integrations, and developing predictive maintenance technologies aimed at optimising operational efficiency and yield for processors.
Leighty also reflected on some unexpected challenges faced in 2024, particularly noting the adverse effects of rising interest rates on capital investment decisions. The company has adapted by focusing on delivering economical solutions and technologies that enhance yield and efficiency, enabling customers to justify their investments amid these pressures. The demand for optical sorting and mechanical grading systems has surged in response to large fluctuations in crop quality, underscoring the need for consistency in the final product.
Key drivers of change anticipated in 2025 include the mass retirement of seasoned engineers, increased variability in harvested crop quality, and the rapid adoption of Industry 4.0 technologies. To prepare for these changes, Key Technology is expanding its engineering services and improving its AI-driven sorting capabilities.
Leighty noted that a stabilisation of international trade policies and the easing of interest rates would be vital for fostering a favourable business environment and supporting stakeholders’ investment confidence, particularly in emerging markets.
Looking towards the future of the industry over the next five years, he envisions a landscape increasingly influenced by data analytics and automation, focused on maximising efficiency and unlocking capacity in production lines. Key Technology plans to contribute to this growth by helping processors achieve full production capacity faster on new lines, aiming to enhance their return on investment while supporting both large and specialised regional players with innovative technologies and a robust global service network.
Source: Noah Wire Services
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