IFA: Potato growers get just 30% of consumer price in retail squeeze

POTATO growers are taking just 30% of the consumer price, and are coming under severe price pressure from retailers, according to a new IFA membership survey.

Like all other food producers, potato growers are adding their voice to calls for the Government to introduce a statutory Code of Practice for the retail sector, the IFA’s Trends and Challenges in Irish Potato Production report argues.

The report singles out the shop window use of cut-price potatoes as a promotional ploy as being a particular problem for the sector. This practice undermines the retail value of potatoes, because all players in the chain are required to supply at a price that “fits” this price model. In most cases, reductions are passed back to growers, often leaving them with prices below the cost of production.