Merchants and retailers urged to address low price of potatoes

IFA president John Bryan has called on retailers and merchants to address the low prices currently being paid for potatoes.

Speaking at yesterday’s National Potato Conference and Trade Show in Dublin, he said growers are at risk of going out of business, with wholesale prices generally failing to even cover the farmer’s production costs.

Mr Bryan said: “The farm gate price has reduced by nearly 30% in the last two years, and aggressive discounting by the supermarkets has wiped out grower margins. The investment by growers in delivering a top-quality product from 25,000 acres across the country must be recognised.

“Both merchants and retailers have to acknowledge potato growers as genuine partners in the food chain, and reward them accordingly. There is enough in the consumer price for everybody, but equity in the food supply chain is sadly lacking for potato-growers.”

Agriculture junior minister Shane McEntee said he recognised that producers need to achieve a balance between supply and market demand in a very open potato market.

He urged the industry to look at the current and future consumer eating habits and promote the product to a far greater extent, focusing on such issues as health, versatility and distinctness. He also emphasised the need “for the message to go out to consumers that potatoes have a lower fat content than either pasta or rice”.

IFA potato chairman Thomas Carpenter added that potato-growing will not survive based on the current return to farmers.

“Potato growers need a price that will cover their costs of production and give them a margin,” said Mr Carpenter. “The positive aspects of this research must be used to stabilise potato consumption and safeguard the livelihoods of commercial growers.”

Meanwhile, Teagasc told conference attendees that exporting to expanding markets in developing countries offered hope for Ireland’s decimated potato industry.

Teagasc director Gerry Boyle said: “Opportunities exist for growers to diversify from ware production to stable contract-based seed production if the economics add up. The Teagasc breeding programme, one of the most technically advanced in Europe, will continue to breed new varieties of potatoes, both for home and export production, delivering one or two new varieties every year.”

Marcel De Souza of Irish Potato Marketing added that moving some production from traditional ware market to seed offers an opportunity to create a more stable market for growers. However, he also pointed out constraints to production, such as the high cost base and high export quality standards.