The psyllid outbreak has cost potato grower Terry Olsen nearly $1 million.
The Horowhenua farmer lost half of last year's crop to the pest and, as a result, has halved the number of potatoes he grows.
"The financial loss in the last 12 months has been in the vicinity of between $750,000 and $900,000," Mr Olsen said.
"The total crop was less than half of what we might have expected to have - and is ongoing. It's meant considerable increases in growing costs."
Mr Olsen has to constantly monitor his crops, checking the underside of leaves for insect signs, which takes time - and "time is money".
He has become so concerned about the pest that he gets others to double-check his own inspections.
Some farmers are unaffected. Others are wondering whether to leave the industry. But all of them are worried about it.
"There's got to be this concern across all of the 230 growers [nationwide]," he said.
"Most of us process growers will be impacted ... there's more unknown about this thing than there is known. I think everyone who's growing potatoes in New Zealand would feel they are vulnerable to this."
Mr Olsen said cooler, wetter weather and good management of the pest by commercial growers meant this year's psyllid infestations were not expected to be as bad as last year's, but it was unpredictable.
"Even if it's minimal in the next year or two, it's always in the back of your mind that it's out there [and] how you're going to deal with it."
Fortunately, Mr Olsen and many potato farmers have, over time, diversified and he also has dairying income.
"But for some of them, the potato part of their operation is a very significant part of what they do," he said.
"It's a bit like you going to work and someone saying: 'You've only got two days' work a week from now on.' That's how I'd compare it.
"Obviously you can't keep losing money in terms of the financial impact, what you do has to be sustainable.
"Is this the end of the potato in New Zealand? No, it's not," Mr Olsen said.
"The domestic consumer is not going to be without potatoes because of this problem."
Asked whether consumers may be paying more for them, he said: "They were cheaper last year than they have been ... so who knows?"
Psyllid Factfinder:
What is it?
Psyllid is an insect pest, like a 2-3mm cicada, or aphid. It was first found in New Zealand in 2006 on tomatoes. It thrives in warm, dry conditions and harms plants by feeding on them, injecting toxins into the leaves, and spreading a disease called liberibacter. It also affects tamarillos and capsicums.
Why is it a problem?
Up to 60 per cent of the New Zealand potato industry is for "processed" potatoes which become fries and crisps. Potatoes infected with psyllid cannot be fried and end up as waste, or stockfeed. Farmers dealing with psyllid have lower production and higher costs.
How can you tell if your potatoes or tomatoes at home have it?
Leaf edges curl, the growing tips turn purple and leaves turn yellow. As the starch in the potatoes is converted to sugar, vegetables appear scorched and plants collapse prematurely.
How did psyllid get here?
Nobody knows but those in the growing industry suspect it sneaked through Biosecurity New Zealand, most likely on flowers.
* For more information and what to do to help prevent the spread of psyllid visit: www.biosecurity.govt.nz/pests/potato-tomato-psyllid
Growers out of pockets and looking to diversify
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