Exporting isn’t a word often associated with UK fresh produce. The combination of a huge population combined with a relatively small land mass and strengthening demand for home-grown produce has meant that growers and suppliers on these shores have had little motivation to look elsewhere.
But in the potato trade, large firms are now turning to Europe to find good prices and prevent a flood in the UK market. Shortages in Russia have had a knock-on effect and UK supplies seem likely to become sought after in the New Year.
The average price of UK potatoes has been rising slightly faster than usual in the lead up to this year’s festive season. Home-grown harvests are now almost complete, having been delayed a little by the recent wet weather. This year’s 5.8 million tonne UK crop was six per cent smaller than last year’s relatively good crop of 6.2mt, so supply has been more limited.
The Potato Council reports that central European and Russian enquiries continue to grow, with some large orders for December delivery already reported following the unusually hot and dry summer weather this year in mainland Europe.
Reports of Herefordshire Estima heading to Poland at £135 per tonne for jumbo packs and King Edward and Harmony to the Canary Islands and Spain respectively come in addition to supplies heading from the UK to Poland and Russia.
One supplier explains: “The national crop means that we have plenty of potatoes but the potentially unprecedented levels of export have made things more difficult. Russia has such a deficit in product so it is importing a lot of potatoes, mainly from Poland and Germany, and we’re seeing movement in Holland, France and Belgium, which is creating volatility.
“Geographically, we are at the end of the chain in terms of exports but there is potential there. I have never seen this situation in 22 years - everyone is trying to look at other companies and work out who is exporting what.”
One source said the problem is that there is no legal obligation to report how much businesses are exporting, making it very hard to gauge how big a problem it may become. “Whether those companies can export in such great volumes remains to be seen, but stock figures from Christmas onwards will be very important,” he says. “If there is no change, then it may prove to be a benign concern but it will be interesting to see what happens in Europe before the Russian season in late May and early June.”
Analyst Mintec reports UK potato prices are up 55 per cent year on year and are 17 per cent above the seasonal average for this time of year.
One supplier explains: “Last year’s abundant potato crop was a ‘one-in-10-years’ event, which resulted in massive price deflation for the category, with low returns for both growers and packers. The 2010 crop started out 2.9 per cent down in planted area as growers looked to increase cereal production and suffered from a cold spring, variable summer and wet autumn, all of which have acted to reduce yields, quality and tuber sizes. On average, we estimate that a lot of growers’ harvested yields are 15-20 per cent down compared to the previous year. This will certainly be a year that sorts the men from the boys, so to speak.”
In terms of retail, we are close to the stage where retailers will lock down their Christmas plans. In the next 10 days, the plan for Christmas will be fully made as they want as few variables as possible at such a hectic time and want to make it clear to stores what the plan is. A boost in potato sales, particularly for King Edward and Maris Pipers for roasting, is commonplace over the festive period and there is little indication that this trend will abate. Some suppliers are reporting a deficit of Class II product as the popularity of value lines grows, a problem exacerbated by the fact that Class I product is being used to make up for the shortfall, making the product more popular on shelf and consequently increasing sales.
And there are signs the next three months could be tough. One supplier says: “On the back of more expensive raw material prices and increasing costs for packaging and distribution, cost prices have gone up so as a result, retails have risen and in most cases, margin aspirations have fallen. Higher retails will inevitably depress sales, so potato packers and retailers need to keep innovating and promoting to drive sales.”
SCOTTISH SCIENCE MERGER TO CREATE JAMES HUTTON INSTITUTE
The history of Scottish science will be honoured in the new name for the organisation to be formed from the merger of the Scottish Crop Research Institute (SCRI) and the Macaulay Land Use Research Institute. Anna Sbuttoni reports.
The new research institute giant to be formed from the merger of SCRI and the Macaulay Land Use Research Institute is to be named after Scottish Enlightenment science pioneer James Hutton.
The James Hutton Institute will bring together existing Scottish expertise in crop research, soils and land use and will make a major contribution to the study of key global issues, such as food and energy security, biodiversity and how climate change will affect the use of land and production.
The new organisation will begin operations in April next year, bringing together the Invergowrie- and Aberdeen-based bodies.
James Hutton (1726-1797) was a leading figure of the Scottish Enlightenment, an 18th century golden age of intellectual and scientific achievements centred in Edinburgh. His counterparts included economist Adam Smith and David Hume, the philosopher and historian.
Hutton is internationally regarded as the father of modern geology and one of the first scientists to describe the Earth as a living system - his thinking on natural selection influenced Charles Darwin’s theory of evolution.
The James Hutton Institute will operate from the two existing sites and will employ more than 600 scientists and support staff, making it one of the biggest research centres in the UK and the first of its kind in Europe. The next step will be to set up an international office.
The Scottish government currently provides £23 million to both SCRI (£13m) and Macaulay (£10m) for bespoke research, accounting for around three quarters of their income.
The cabinet secretary for rural affairs and the environment, Richard Lochhead, said: “By bringing together the talent and expertise of two such internationally respected bodies, it is entirely fitting that James Hutton is the inspiration behind the new name. As a geologist, physician, naturalist, chemist and experimental farmer, his life encapsulates the ambitious and wide remit that I am sure will be a hallmark of the James Hutton Institute.
“I’m confident that it will rapidly establish itself on the global stage, enhancing even further the reputation of Scottish science and providing exciting new opportunities for all its staff.”
The new name was put forward during a joint competition for staff.
Professor Iain Gordon, chief executive of the new organisation, was named in July this year, following the appointment of chairman Ray Perman in March.
Gordon said: “As a distinguished and influential Scottish polymath with an international reputation, it is wholly appropriate that an interdisciplinary scientific research institute based in Scotland and seeking to operate and have impact internationally should bear James Hutton’s name. I believe this decision will have strong political resonance in Scotland today, where the ambition is to once again have Scotland punching well above its weight.”
No comments yet