Spiraling input costs will lead to fewer potato plantings, with the upcoming season not being viable if growers don’t get price increases.

“Many growers will simply not plant. They had to pay up-front to secure necessary inputs this Spring. The planting season is currently underway and already there are reports of growers cutting back on production because of costs. Growers who are storing potatoes are being hammered by soaring energy costs whilst receiving the same or less for their produce than they would have last Autumn. It’s not a sustainable model and it will lead to supply issues before new season stocks become available next year,” Irish Farmers Association (IFA) National Potato Chairman, Sean Ryan, recently declared.

All retailers will have to step up and pay more for wholesales potatoes today and also give a guaranteed base price for the autumn that gives growers certainty to go ahead and plant new season potatoes.

The Government must also step in now and provide significant financial support to the potato sector to allow growers to survive this current crisis.

In February alone, aggregate input prices rose by over 28%, with increases in certain fertilizers (+180%); fuel (+38.5%); feed (+20%) and electricity (+22%).

According to the recently published report by economist Jim Power, commissioned by the IFA, potatoes were the only fresh produce to decline at the retail level last year (a decrease of 4.7%). Irish consumers and retailers must place value on home-grown produce.

Irish growers are proactive farmers who have borne the brunt of Brexit, COVID-19, and now an inputs crisis. Unfortunately, growers are price takers and cannot pass on the added cost of production to others. Strategic action from Government is required immediately.

European Spud Consumption Levels Have Dropped

Generally, across Europe, potato prices are holding quite well but consumption levels have dropped back since COVID-19 restrictions have eased over the last few months. In France, it is reported that annual consumption levels have dropped back by about 10% to the end of March, mainly attributed to ‘post-COVID-19 fatigue’ and the attraction to convenience food.

“Markets remain largely unchanged at present; the Easter bank holiday created some additional demand in the foodservice sector. Recent dry weather has allowed good progress on maincrop preparations and plantings at this point. More growers are reported to be finished in the southeast. Again, growers are reminded to plant for their markets as markets continue to re-configure post-COVID-19. In the UK maincrop contracted material report much better movement but interest in free buy is still disappointing”, a recent IFA report shows.