Potato growers should see benefits from Brexit
Potato growers heard yesterday that with their industry currently less exposed to Brexit risks than many other enterprises, the industry was one of the few sectors likely to benefit from the UK’S exit from the EU.
With over 50 per cent of the UK’S frozen potato products currently imported from Europe, UK processors are gearing up to source more homegrown spuds, a major potato event heard yesterday.
“Tariff-free access is critical for most sectors,” said David Swales, the Agricultural and Horticultural Development Board’s head of strategic insight, “but for potatoes barriers might present an opportunity for import substitution – particularly in the processing sector.
“Even under the most favourable trade deal there is still likely to be an element of trade friction which would add to the cost of the imported product - and there is considerable opportunity for UK growers to benefit from import substitution.”
Speaking at the annual “Potatoes in Practice” event which took place at the James Hutton demonstration farm outside Dundee yesterday, Swales admitted that while the benefits for ware growers were obvious, Brexit would act as a double –edged
sword for seed producers: “While increases in home production would be likely to result in an increase in demand for seed, the situation might be less beneficial for those who exported seed.
“With Egypt and Morocco currently representing two of the major destinations for Scottish seed potato exports, they currently benefit from preferential deals on importation which have been negotiated by the EU.
“However, in the event of a hard or a no deal exit from the EU it would be unlikely that they would continue to benefit from this arrangement – or have time to get a similar status agreed in the short term.”
Also speaking at the event, potato industry stalwart,
Dr Stuart Wale of SAC Consulting said that while this year’s unusually hot weather had spelled challenges for the potato industry, it was also likely to offer opportunities.
He said that while temperatures had been hotter than usual in Scotland, they had not been as severe as south of the border – and had only risen marginally above the potatoes “comfort zone” of 14-22C, whereas it had been considerably hotter in many areas of England.
“And this together with the higher levels of soil organic matter which meant that the effects of drought were reduced will have worked to the benefit of Scottish growers.”