Move comes as survey shows growers are under increasing financial pressure
McCain has launched a £30mn support package for its potato growers against the backdrop of rising financial pressures.
The frozen potato brand is the largest purchaser of the UK potato crop, and the company said it was making the move – which equates to an additional £30mn investment over the next three years – in an effort to support its 250-strong network of farmers.
The package sits alongside existing measures, which include working together with growers as they transition to regenerative agriculture practices and ensuring fair prices for their potatoes.
The move comes as a McCain survey of arable farming decision makers indicates that half of UK farmers have reconsidered their future in the sector due to a rise in financial pressures in the last year.
Rising energy (35 per cent) and fertiliser costs (32 per cent), as well as environmental threats (36 per cent) are having the biggest pressure on farmers’ finances, the survey suggests. Financial pressures are not only affecting farm operations but are also the primary factor (55 per cent) straining farmers’ mental health.
To mitigate these challenges, McCain’s new £30mn investment, developed in collaboration with its farmers, looks to support them through a range of initiatives such as adjusting the price per tonne paid for potatoes to reflect the increasing risk of yield variation.
It is also offering access to strategic capital support, providing farmers with a direct cash injection covering up to 33 per cent of their total investment into assets such irrigation infrastructure and storage.
And it is setting out a 20 per cent advanced payment of contract value to help with cashflow and support the increased negative working capital farmers are facing.
McCain noted that it is also committed to ensuring a fair and sustainable price for its farmers, and highlighted the fact that in 2007 it pioneered an Indexation Model to track changes in the cost of production.
James Young, vice president for agriculture at McCain Foods GB, said: “British potato farmers are facing a myriad of unprecedented challenges from rising input costs to extreme weather events. At McCain, we pride ourselves on the strong partnerships we have built with our 250 growers and are committed to supporting them. We believe this package bolsters our ongoing collaboration with growers to help ensure the long-term sustainability of British agriculture.”
McCain said it is also working with growers to navigate the extreme weather patterns, such as heavy rainfall, flooding and unseasonably mild temperatures, that are placing additional strain on farmers’ finances.
The company aims to implement regenerative agricultural practices across 100 per cent of its global potato acreage by the end of 2030.
