On-farm and Upstream Economic Contribution of the Scottish Potato Industry is GBP507m
According to a recent study by Scotland’s Rural College (SRUC) academics, since the 1970s, there has been a 71% decline in the UK’s demand for fresh potatoes as consumers have shifted to other foods like pasta and rice.
Additionally, the loss of access to export markets for seed potatoes as a result of Brexit implies an additional loss of demand, notably in Scotland, where seed production is more essential due to disease-free growing conditions and related ‘high health’ status.
Overall, the survey concluded that the potato market in Scotland was more stable than in the United Kingdom, accounting for about a quarter of total potato production from farms.
Between 2018 and 2020, Scotland’s farm gate potato production, comprising seed and ware potatoes, was worth approximately GBP245m. This accounted for 6% of Scottish agricultural output and 22% of UK potato production.
Even though the UK is currently importing more potato-related goods than it is exporting, including processed goods, it is still a net exporter of seed potatoes, with 75% of the country’s potato crop coming from Scotland.
The production of potatoes contributes more to the economy than its farm gate value, which is significant. Processed foods like chilled, frozen, dried, and cooked potatoes, as well as the supply chain that has developed around the sector and includes specialized equipment, storage, and processing facilities, all represent additional economic activity.
Overall, the Scottish potato sector had an on-farm and upstream economic contribution of GBP507m output and accounted for 2,880 full-time jobs.
“The work on assessing the economic contribution of the Scottish seed and ware potato sectors is a timely reminder of how complex agri-food supply chains are, and that the integrated potato supply chain operates across the UK and beyond. Scotland has an international reputation for growing high-health seed potatoes, yet the economic contribution of the seed sector was often only reported as the farmgate value. This report demonstrates the economic importance of the Scottish seed potato sector to those growing potatoes for processing and consumption in Scotland, the rest of the UK, and internationally. With growing concerns about the impacts of potato cyst nematodes (PCN), and other diseases, this provides evidence of the importance of the sector that can help justify Scottish Government support for research and development, knowledge exchange, and wider policy measures for the sector,” report author, Steven Thomson, Senior Agricultural Economist at SRUC, said.
According to Gerry Saddler, Chief Plant Health Officer for Scotland, this report highlights the significance of the potato sector to Scotland’s rural economy.
“In particular, it throws a spotlight on how important our seed potato production is for the potato supply chain in the UK but also many other countries around the world. Potato production worldwide is under constant threat from the actions of pests and our changing climate. This report gives a clear indication of what could potentially be lost if the potato sector, working in partnership with the Government, fails to maintain the high production standards built over many years in Scotland,” Saddler concluded.
