Soaring cost of potatoes heaps pressure on NI food processors
VEGETABLE growers and processors here could be heading for a clash with supermarkets over the soaring cost of potatoes as they count the cost of the summer drought.
One food processing firm, which did not wish to be identified, said the cost of buying potatoes for its products had increased from £120 per tonne in 2017 to almost £300 per tonne this month.
Following one of the hottest summers on record, Europe is experiencing a shortage of vegetables, ending a traditional source of cheaper produce for many food processors here.
In the Republic some potato growers have reported that their crop is 25% down, with the rising cost of seed resulting in a dip in the volumes being planted. The potatoes themselves are also
smaller. And the impact of the shortage is expected to become more pronounced through the winter months.
The latest data from the UK AgricultureandHorticultureDevelopment Board shows wholesale prices of potatoes have already soared.
The cost of grade one Maris Pipers rose from £150-170 per tonne in early November 2017 to £310-355 per tonne last week. King Edwards (grade one) have jumped from £135-150 per tonne last November to £305-350 per tonne this week.
UK-wide, the average price of washed carrots has increased from 32p/kg last November to 51p/kg. Parsnips rose from 81p/ kg to £1.32/kg over the same period.
Stephen Polley of Marlin Retail, which owns eight John Dorys chip shops here, said the cost of its premium potato product sourced from England had increased by 25%.
But he said his English supplier has been forced to increase the cost of its bagged potato product by 100%.
He expects the situation to worseninthenewyear,andsaid consumers are likely to see more price rises right across chip shop counters.
Angus Wilson, who runs wellknown potato brand Wilsons Country in Craigavon, said the drought has left a shortfall of 1520% across Europe. “Prices have doubled for some varieties.”
He said that it is unclear whether the rising prices could inturncurbdemand.Buthesaid processors may struggle to pass on the cost for their products.
“You try to pass on the costs if you can, but in a market like this, it’s hard to pass on all of the pain.”
But Martin Hamilton, the owner of Co Down vegetables processor Mash Direct, said it had been “lucky” in how it was able to deal with the drought — which he said had been less severe in Northern Ireland than in the south of England.
The company was affected by having to delay its harvest of potatoes, which it grows for use in mash products. “We held on and held and didn’t harvest for three to four weeks later than normal and let them grow on,” said Mr Hamilton. “We’re lucky we live in Ireland as down in the south east of England, their crops were absolutely fried. You can see the increases in the price of potatoes on the supermarket shelves, it’s plain for anybody to see, and for the likes of carrots and parsnips too.”
Roy Lyttle, vicechair of the Ulster Farmers’ Union’s vegetable committee, said growers have faced much higher costs for producing their crop. His company RL Produce sells leeks to supermarkets. But he said the competition between supermarkets means they aren’t keen to raise prices to suppliers.
“We would probably be as well off selling our produce into the open market as we would into the supermarkets at the moment. Most years it’s the other way around.”
One major local processor, who did not wish to be named, said his business is at “crisis point”.
He revealed that he has lost customers and a considerable number of experienced European workers due the uncertainty over Brexit. Struggling to replace the staff, he said the surging cost of potatoes has only compounded his woes.
You try to pass on the costs if you can, but in a market like this, it’s hard to pass on all of the pain