Eager to experience the first taste of spring after Christmas, UK consumers usually provide a healthy demand for imported new potatoes in the winter months from the likes of Egypt, Cyprus, Israel and, more recently, Morocco. However, this year, the economic downturn and ample volumes of maincrop mean that stored potatoes grown domestically have been favoured over imported new potatoes.
The main exporting countries have certainly felt this. According to the Egyptian Producers’ Consortium (UK) Ltd (EPC), new potato producers in the country have reduced the amount of land they are growing on in anticipation of a downturn in demand from mainland Europe and the UK.
Egypt produces around 1.25 million tonnes of new potatoes, of which 300,000t are destined for the export market, with 180,000t ending up in Europe. Some 23,000t make their way to the UK marketplace, providing suppliers with that all-important early new potato offer.
“Demand has been slow,” says Dr Ihab Tadros of the EPC, which exports on behalf of eight new potato growers in Egypt. “Although potatoes are a basic item and should not be affected by the economy, imported new potatoes are a luxury item, especially when the average housewife realises she can pick up a stored UK potato for half the price. A luxury in a time of economic uncertainty is a problem and new potatoes have definitely been hit -but this is across the board for all new potatoes over the last 18 months, including UK-grown.”
And importers reflect this view too. QV Foods handles 45t-plus a week at this time of year - predominantly UK coldstore product, which is supplied to both the retail and foodservice sectors in various formats. The firm also imports from mid-November to service loose skin requirements once the UK crop has finished.
“Market data at the end of 2009 shows that pre-pack new potatoes are up one per cent year on year in volume, with no change in value,” says Simon Martin, sales director of QV Foods. “At the same time, loose new potatoes were down 32 per cent in volume year on year and down 16 per cent in value. This relationship between volume and value reflects the differing ‘seasonal’ price year on year, while also demonstrating that consumers are possibly tiring of the traditional loose offer and maybe moving, to some extent, in favour of the more exciting and convenient fresh prepared potato offers that are now on the shelf.”
Israeli exporter Agrexco has not felt the pinch as much, however. Israeli new potatoes are grown in the south of Israel in the western Negev region and Agrexco works with around 20 growers. Out of the 70,000t of new potatoes it exports, 25,000t will go to the UK. Ori Zafir, sales manager at Agrexco UK, says: “We have found that demand is steady - neither increasing nor decreasing - and basically staying the same. Growing and harvesting-wise, everything is okay. The only problem that is a reoccurring one is the exchange rate. The season has been good and there have been no growing problems; the main concern is the shortage of water.”
Another new potato-producing country can identify with this problem, with drought a huge concern for new potato growers in Cyprus for as long as five years. However, this season has brought cause for joy. A niche product, the Cypriot new potato crop was favourably delayed by two to three weeks because of rain, but now the country’s temperature has returned to 22°C and the crop is benefiting from the much-needed downpour.
“If the weather continues like these last two weeks, we will move onto the interim crop from the winter crop quicker,” says Nicos Genneos, export manager at the Cyprus Potato Marketing Board (CPMB), which exports about 50 per cent of Cyprus’s 15,000-16,000t of winter new potato production. “The spring crop has been planted and because of the rain, we believe it will go very well.”
The CPMB sends approximately 35 per cent of its new potato exports to the UK and expects to send more this season due to new supermarket contracts. Although production was put back somewhat, sendings to the UK were earlier and were available in the last week of November. “We have less to send, but we have been getting a really good price.”
Pest resistance has always proven difficult for new potato growers. Egypt has experienced problems with brown rot over the last 10 years, which has brought a dramatic decline in its new potato exports to the UK and meant that competitor countries Israel and Morocco have been able to grab some market share. Some 10 years ago, Egypt used to send as much as 100,000t of new potatoes to the UK in the winter season; the EPC is now eager to regain the country’s losses, since the brown rot problem has been virtually eradicated.
“A lot of things have changed in Egypt since the government took control of the brown rot problem and managed to control what was being exported to Europe,” says Tadros. “Now seeds are approved before growers can use them and the government checks the land to make sure it is free of rot.
“This has, unfortunately, reduced the number of growers to 35 or 40, as they have to be licensed under the Egyptian government’s scheme. There used to be about 300 new potato producers that would trade with Europe, so this has been a dramatic decrease.”
Tadros maintains that all brown rot issues are now under control and that further export opportunities are there for responsible Egyptian companies. “Growers working with the licence will do very well because of Egypt’s weather and the fact that labour is still very cheap,” he adds. “Our new potatoes are fluffy and still hand-picked - it is a real added value.”
Cyprus is also looking to home in on possibilities in the UK marketplace. QV Foods is ready to make the most of consumers looking for that something extra special and believes that Cypriot new potatoes fit the bill.
“Over the last few years, red soil potatoes do seem to have had an edge,” says Martin. “Price point seems to be the greatest attraction, as ever-strong promotional activity drives sales, but once values revert back up to more realistic market levels, volumes drop back again.
“The Cypriot new potato trial this season has been received reasonably well, and educating staff at the point of display and managing any free-flow loose product is always part of the challenge. The red soil potatoes always retain a more attractive appearance in their brushed state than coarser soil origin potatoes, which does help.”
Prepared and ready-to-cook packs of new potatoes are leading sales in the UK, but is this set to continue in light of the economic downturn? And will it dominate future trends in the new potato category?
The traditional varieties are still popular, particularly Maris Peer, but new varieties are constantly coming forward and being trialled and, if they are good enough, grown commercially. According to Martin, any robust variety that delivers good flavour and decent yields will always be a potential winner.
“Current market data shows that fresh chilled potatoes have grown their value by 11 per cent year on year and their volume by 17 per cent,” he continues. “This reflects the current consumer demand for convenient, healthy but well-priced products and this demand shows no sign of slowing down at the moment.
“Why should it, when new potatoes lend themselves so well to microwave steaming, to provide a fresh, healthy and versatile meal accompaniment? If anything, the trend over the coming months will be for even more innovative and creative recipes to capture the consumer’s imagination.”
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