Farmgate potato prices are running 28 per cent up year on year to 10 September, according to figures from Mintec.
The market analyst found that potato prices rose strongly with the start of pricing for the 2010 season.
The Agriculture & Horticulture Development Board (AHDB) points to changes in acreage and weather factors as the main reasons for the hike.
“This year, we have got a three per cent reduction in planted area,” said a spokesman for AHDB. “We are expecting lower yields as planting was late due to the cold, wet spring. Then we had the dry spell and a very wet August. A lot of growers are leaving their product in the ground to try to bulk it up.”
Although prices ex-farm are up, the AHDB does not expect this to have a significant impact on pricing in the major multiples as retailers seek to maintain prices to customers. There could even be greater opportunity for export, or at least a strengthening domestic market. “Production issues in Russia and Ukraine means there may be more opportunity for export to eastern Europe for the UK,” said the spokesman. “It is more likely to benefit growers in the Netherlands and Belgium as they are closer to those markets, but at the very least it means they will send less our way and so we will see a season of low imports.”
