New Zealand’s ‘Spud King’ Allan Pye dies aged 83
Allan Pye, a South Canterbury farmer whose family business worth an estimated $1 billion all started with a planting of seed potatoes, died in Christchurch on Saturday.
Regardless of his success, throughout his life Pye said he gained his greatest joy from day-to-day farming. Of his wealth, he once commented: “They got the noughts in the wrong place.”
Known both in New Zealand and Australia as the Spud King, Pye grew up on his parents’ Charles (Chub) and Frances’ small farm on Factory Rd near Temuka, with his sisters Marion (deceased), Noeline and Helen.
While at school, Pye started picking potatoes for two local farmers and, instead of wages, one of them offered him seed potatoes. Aged 14, he left school and leased some land from his father, starting a lifelong passion for growing potatoes.
He soon started hay baling, contracting and transport businesses, and visited the United States looking for ideas, returning with plans for centre-pivot irrigation, a first for the country.
“Allan was always looking at ways to improve both on-farm practices and postfarmgate returns,” the family said in a statement. “Allan was a supplier of potatoes, carrots and peas to Watties in Timaru, and when they decided to amalgamate operations in Christchurch, Allan worked with local farmers and businessmen including Doug Haigh, Allan Turley and Allan Hubbard to help establish Alpine Foods, which is now the McCain factory at Washdyke.”
The relationship with McCain led Pye to buy land in South Australia in 1990. With his son Mark, they increased landholdings there, and became one of Australia’s biggest potato, carrot and onion growers.
In 1996, Pye headed the purchase of Tasmania’s largest farm, Rushy Lagoon Farm for AU$8 million. One of the partner buyers was Timaru financier Allan Hubbard of South Canterbury Finance.
In the 1990s traditional South Island sheep, beef and arable farms were being extensively converted into dairy farms. Pye turned his attention to this sector.
“Perhaps Allan’s biggest business success was the formation of Dairy Holdings in 2000,” the family statement said. “It started with a conversation with Allan Hubbard at a family wedding, and soon after Allan Pye set out to purchase about 30 dairy farms previously owned by Tasman Agriculture and Dairy Brands.”
Both Pye and Hubbard became large shareholders in Dairy Holdings, which became New Zealand’s largest corporate dairy farmer, and owner of more than 70 dairy farms.
In 2010 South Canterbury Finance, then the country’s largest locally owned finance company, collapsed amid claims of fraud. Pye was not implicated, nor his reputation affected. In the fallout, he bought Hubbard’s share of Rushy Lagoon Farm, and expanded the farm to 22,000ha, with 4000 cows, 8000 beef cattle and 7000 sheep. In 2018 he placed the farm on the market for AU$70m, then withdrew it.
In 2014 he sold his Dairy Holdings share for a substantial amount believed to be about $100m.
Under Pye Group, Pye’s son Mark and daughter-in-law Michelle took over New Zealand operations growing potatoes, carrots and operating dairy farms across the South Island. “He was also a strong supporter of irrigation schemes in Canterbury,” the family said.
“He invested funds in Rangitata South Irrigation and at a crucial time purchased excess shares in Central Plains Water ensuring the scheme could go ahead.”
Murray Turley said Pye was innovative and forward-thinking, and drove hard the plan to develop Alpine Foods for the benefit of Mid and South Canterbury.
Pye died in Christchurch’s Burwood Hospital, aged 83. His funeral will be held at Pye Group’s home block at Rise Rd in Winchester on Friday. He is survived by his five children, Mark, Leanne, Leighton, Dean and Bernice, 15 grandchildren and five great grandchildren.