We’re still feeling crunch on spuds

THE price of wholesale potatoes has soared more than 25 per cent across the nation after heavy rains and floods in the key growing period washed away three months’ worth of supply.

The crunch has hit potatoes used mainly for processing – those frozen after being cut into chips and other products – creating a fresh setback for the hospitality sector as it recovers from three years of the pandemic.

Coles and Woolworths have also introduced buying limits as freezer shelves are stripped bare, saying it’s not certain when the restrictions will end.

The shortage has forced pubs, restaurants and fish-andchip shops to source alternative supplies amid peak demand during a summer holiday break. Others have reverted to sourcing fresh potatoes, which are still plentiful, and cutting chips in-house.

This week, McDonald’s added potato scallops to its menu, with a spokeswoman saying the company was able to source enough supply ahead of the shortage.

McDonald’s sources most of its potato products from Simplot or McCain Foods.

“Our potato scallops are made here in Australia, from Australian ingredients. We worked with our suppliers to source ingredients ahead of the current shortage,” she said.

Meanwhile it is expected to take another three months for potato farmers to recover fully.

By then, the tourists and beach crowds would have dwindled along with peak holiday profits for fish-and-chip shops and cafes.

Rabobank analyst Pia Piggot said supplies were also tight in the US and Europe from drought or after farmers switched to more profitable crops after demand dropped during the pandemic.

Woolworths chief executive Brad Banducci warned customers in November that potatoes would be in short supply, saying poor weather in Tasmania had disrupted supplies of frozen vegetables. As well as chips, Mr Banducci said potato crisps were also scarce.

Coles said it was working with its suppliers to restore stock levels.