AHDB Potato Council chairwoman Fiona Fell has acknowledged the “great pain” caused to potato growers following two seasons of over supply.
In a statement released on Wednesday she refers to the Potato Council’s Market Dynamics Report of 12 months ago which highlighted that 2013 year-on-year retail volume sales had fallen by 8%.
This is the equivalent of 133,000 fewer tonnes of potatoes
This might have been expected to result in lower plantings last year but just over 121,000 hectares were grown again in Great Britain, a figure very similar to the year before.
“A favourable growing season in 2014 resulted in a 5.7m tonne crop, which was 3% up on the previous season,” added Mrs Fell.
“By November the estimated GB stock position was the equivalent to two boxes per hectare (200,000 tonnes) higher than a year before.
“Great Britain can no longer utilise this level of production.
“The industry has been successful in reducing supply chain waste and coupled with a drop in fresh potato consumption.
“This results in a new base level for production, well below what we have been used to.”
Our high stocks have been placed under further pressure by a north-west European crop of 28m tonnes, which is 4m above the five-year average.
“The result is extremely uncomfortable and very challenging for our grower base.”
Ex-farm free-buy prices, both at home and abroad, have been weak reflecting the supply situation.
The GB weekly free-buy price fell to a new season low for the week ending Jan 16, hitting £77.43 per tonne compared to £152.09/t at the same point last season.
This is the lowest it has reached since autumn 2009, and the lowest for the time of year since the 2002/03 season.
Mrs Fell continued: “Volatility is set to continue across agriculture and contracts are an important means of managing risk.
“It’s paramount growers build strong relationships with their buyers, based on trust and transparency.
“Although there’s been some progress with shorter chains and longer terms, contracts only work when terms are honoured by both parties.
“We encourage growers who have not had contracts honoured this season to contact their farming union (NFU, NFU Scotland , NFU Cymru) for advice and legal assistance with handling disputes.”
Looking forward to the 2015/16 season Mrs Fell said: “Grow what you are being asked to grow by the market.
“Grow what you know you can sell.
“Changes in consumption have affected all developed nations.
“France, Germany and Spain have all publically reported declines in fresh consumption this year.
“GB retail consumption volumes have begun to stabilise, with total fresh retail volumes rising 2% year-on-year compared to the quarter to Jan 4 but are still down 2% for the 52 weeks compared with the previous year.
“Arresting fresh decline requires creative and concerted efforts from all parts of the supply chain from plant breeders, through primary producers and their supply chains and associated retailers.
“Our latest collaboration is with ‘Britain’s greatest ever gymnast’ Beth Tweddle MBE. The famous Olympian, known for her many medal successes has teamed up with Potato Council to support our Cook Your Own Potatoes project, which aims to communicate the health benefits of potatoes to children.”