It has been a frustrating quarter for UK growers and suppliers, as they wait for the right conditions to plant the new crop and continue to work hard to shift the remaining old stocks, left over from one of the worst-ever harvests last summer.
How the UK season will pan out remains to be seen but, with temperamental weather conditions interrupting the planting process, this is not the solid start the sector was hoping for.
The new season looked to be getting off to a promising start in March, when planting got underway, but growth was promptly stunted by a prolonged cold snap in April.
Frosts in Cornwall in the last few weeks have caused widespread damage to the first early crops but, fortunately, only small areas of polythene had been removed because of the low temperatures. The crops are expected to recover, but growth has been put back by up to three weeks in the worst cases.
The South East and Pembrokeshire were also hit by cold conditions, with temperatures dropping to -3ºC in Wales.
Planting is progressing very slowly, but conditions have improved in some areas this week, and soils are finally drying out. Total plantings up to last week were estimated at 24,500 hectares, compared with 62,300ha last year.
Soil conditions have been good in the South, where planting is now moving forward, while the North has seen little improvement, with continued cold weather and slow drying conditions. The East has had mixed fortunes, with planting underway on light soils, while heavy soils have remained cold and difficult.
Scotland is still cold for this time of year and, so far, there appears to be little chance of soil temperatures increasing.
Token harvesting has made a start in Cornwall, where a few growers have lifted crops for local sales only, and some product has even found its way to the wholesale markets in London and Birmingham. But suppliers are quick to remind the trade that, even with news of first arrivals in stores, home-grown potatoes will not be available in higher volumes until May.
The setbacks in the planting process mean the start of the new season will fall behind the early start achieved last year but, given that growers enjoyed exceptionally early arrivals last year, the delay may not be as bad as it looks.
“We know we are behind all the most recent seasons, for this time of year,” says one market analyst. “We had a good early start in January in the South West, which progressed well, so we have had some token harvesting. But there are concerns about whether the bulk of the earlies will be on time, and what effect this will have.”
But the lateness of the new season could open up some opportunities for the UK sector, which it has missed out on in recent years. The expectation of the crop delay has seen the market strengthen very quickly over the last few weeks, and prices are firming up, even for old crop.
“The delays in the planting process will make 2008 supplies later than expected and, because of this, buyers on the fresh market have shown more interest in last year’s crop,” says one insider. “This has put some life back into the market, and prices for the 2007 crop have been moving upwards. The trading season has been longer than anyone thought it would be.”
The threat of a late start to the new season, both in the UK and on the continent, has seen imports slow down in recent weeks. The previous three months had seen a relatively high level of imports, because prices on the continent were lower than they were in the UK, so buyers were attracted to the European market. But with planting on the continent delayed, much like the UK crop, prices are climbing. “The opportunities to spot buy new potatoes from overseas will be few and far between,” one supplier predicts. “But importers with a good import structure or programmes in place will be fine.”
The legacy of poor growing conditions that plagued the sector since last June and July, when heavy rain and flooding hit volumes and quality, has continued to make its presence felt. “The old crop was some of the worst that was harvested for many years and, when the new season starts, there will be a lot of suppliers out there who will be glad to concentrate on that,” says one insider.
The available volumes of poor-quality stock with high wastage levels are plentiful, but prices are at the bottom of the scale, and are showing no sign of improvement. The remaining product, which is proving hard to shift, will eventually go to processing or for stock feed.
The price difference from top-notch spuds to lesser-quality product is likely to continue to increase.
But there have been little or no supply issues in the last three months, with available volumes meeting demand, and suppliers working what they have as well as they can to ensure quality meets the right standards. The delay before the start of the new season is likely to help shift remaining volumes of the 2007 crop.
“This time last year it was very warm, and we saw quite a big switch away from old crop to imported new potatoes, just as shoppers were looking out for lighter choices,” says one supplier. “This year, it has been much colder, and consumers are not going for salads and light meals because they have stuck with more substantial meals, with baked potatoes or mash.”
TNS data for the last four to eight weeks shows that the growth in potato sales has been healthy, as the weather has joined with talk of a credit crunch to turn consumers back on to staple foods, to the benefit of the spud. “Potatoes are a basic and hearty food and, when it is cold and when there are fears of a recession, consumers start to turn away from premium prepared foods, and go back to basics,” says one insider. “When shoppers are watching their purse strings, it is a win for potatoes.”
But the sales growth in the old potato category has not appeased UK growers and suppliers, who feel they have not had the support they need from retailers in the last three months. “It is fair to say the multiples have been relatively uncompromising,” says one supplier. “There is a lot of competition to be the cheapest retailer, because that is what consumers will want over the next 18 months to two years. It is the suppliers who are caught in the middle, because retailers don’t want to pass on inflation, and we are the ones who will suffer.”
Insiders are predicting that the next quarter will be challenging for the UK potato sector, given the expected delays to the start of the season. “UK new potatoes will come on stream in the last week of May or the first week of June, followed by the maincrop in the first week of July,” says one supplier. “The next three months will be a really testing time for the UK industry.”
GROWFAIR - PROUD TO BE CORNISH
Cornwall is very fortunate in that it has an excellent harvest of potatoes, often before the rest of the UK, due to its favourable growing climate and soil type. Famous varieties of Cornish potatoes include Rocket, Minerva, Premier, and Accent - all of which have their own following, says Mark Oughtred, brand development manager at Bristol Fruit Sales, pictured right, with Cornish grower Treve Berryman.
We have just launched our new premium brand called Growfair - Pride of Cornwall, starting with Class I Cornish first early new potatoes, which come in a 6.36kg (14lb) box, before they are extended to a 12.5kg pack. As the season progresses and the value of the potato decreases as more become available, they will be available in a 25kg bag.
Cornish potatoes are extremely popular with our customers, which include both the foodservice and retail sectors, as they are a versatile and tasty product that can be incorporated into all sorts of recipes. What we are really hoping for is a warm spell of weather to push the harvest on, especially as the warmer it is, the more new potatoes consumers tend to eat, as part of light options and salads.
We normally start with indoor crops before moving to outdoor produce, the difference being that the indoor crop is grown in large potato tunnels that trap in heat, with watering levels maintained. This level of control encourages early yields that fetch a premium price, bearing in mind they are more expensive to grow. We then move onto the outdoor crops, which fully benefit from the favourable Cornish climate.
Berryman, whose family has been farming the Cornish land for more than 100 years, supplies the Growfair brand. “What is important when growing potatoes is finding the ideal site which is south-facing, to get more sunlight and longer hours, which warms the soil,” he says. “One of the unique benefits we have, being on the south coast of Cornwall in the renowned growing area known as the Golden Mile, near Penzance, is the warm sea breeze lifting the temperature of the land by a few degrees, which consequently inhibits ground frost. This is particularly important, as ground frost can stunt potato growth and delay natural development.
“This season has been quite unusual so far, with the first harvest earlier than usual, but the rest will come on stream about a week later than usual, after uncharacteristic night frosts.
“We have supplied Bristol Fruit Sales with a range of vegetables for about 16 years and, when they told us they were going to promote Cornish produce, we were keen to get on board. When someone tries to do something to help your industry, you should support them. We see the Growfair brand as a partnership between growers, Bristol Fruit Sales and its customers.
“With the chain coming together, it is about getting good value for everyone,” he adds.
Cornish potatoes have always been a reliable and consistent product for our county and, with our new Growfair brand, we are proud to be playing a part in promoting their continued popularity.
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