This season has seen something of a turnaround for the potato category, in that for the first time in three years, growers have enjoyed close to ideal growing conditions and suppliers are expecting a high yield.
However, there have been mounting concerns about slow movement off the fields in recent weeks and the sector is struggling to pinpoint why demand is failing to meet supply. Both growers and suppliers are bracing themselves for a depressed market this year.
The harvest to September 18 was estimated at 46,900 hectares, or 36 per cent of the total, up from 34,200ha (26.6 per cent) at the same time last year.
This week, improved conditions have allowed the harvest to progress well after some interruptions, particularly in the South East, as well as western and northern parts of the country. However, parts of Cambridgeshire and East Anglia remain very dry, with some growers reporting no rain for six weeks. The last few weeks have seen lifting in the Midlands and further West remain ideal, while in the East, growers have resigned themselves to having to irrigate before lifting.
North of the border in Scotland, drier weather has boosted the harvest, even though heavy soils remain wet under the surface and recent heavy rain has caused water damage to some crops.
“In terms of production, we have had a very good growing season and this is shown in the high yields out there,” says an insider. “Everyone is expecting above-average volumes this season, but this is no surprise to us - it has been looking that way for a while now and there is no doubt that we will see a big crop.”
However, a north-south divide has become apparent, with growers battling either wet or dry conditions in an effort to stay on track. “The north of England and Scotland has been very, very wet so there has been very little progress in the harvest,” says one supplier. “This means that growers who were previously working ahead of schedule are now falling behind as a result of the unsettled weather, which has also brought on some quality issues and caused some wet patches to develop in the fields.
“However, this will not affect significant volumes and growers in northern areas are still confident that they will get their crops cleared, despite the challenges.
“Down south, it is a very different story,” he continues. “Conditions have been very dry, particularly in eastern counties, which is affecting quality. The biggest cause for concern has been the perceived lack of slow movement off the field, which everyone has been complaining about.
“However, it is difficult to ascertain whether this is a result of a slower than normal movement because winter is still holding off combined with the excess yield, or if it is just the high yields. Either way, confidence is low and the quality is not particularly good.”
It looks as if the potato category is having a hard time across the supply chain, with growers tackling high yields with higher levels of wastage through the packhouse, relatively poor returns and retailers trying to avoid price deflation.
“Again, growers that will do well are those who are contracted,” says a source. “It is going to be a pretty depressed market through the rest of the storage season and I suspect that it may even have a knock-on effect on next season if there is a big carryover of cheaper, old crop. But it is too soon to tell, considering that we have not even got the crops in the ground yet.
“From now on, my advice to growers would be to be absolutely sure that what they are putting in store really is top draw because if they put material in that even raises the slightest doubts, they will only lose money on it,” he continues. “Growers should not bury their heads in the sand at this stage because they will not recoup their money, especially if potatoes are a little bit scabby or bruised now - in this case, selling material come March or April will only make £30 a tonne if growers are lucky.”
At the retailers, pricing strategies continue to be aggressive as supermarkets fight it out for volume sales.
“There is a real concern about what will happen in the retail market,” says an insider. “The sector is worried that there might be a full-on price war on the way in the lead-up to Christmas, which could be led by any of the retailers. If this is the case, there will be more potato firms going to the wall, but I’m not sure that supermarkets are bothered anymore.
“Discounting is the bane of all suppliers and growers, especially any retailer who is willing to sell below cost.”
STORAGE WARNING FOR SPUDS
the 2009-10 potato storage season will be crunch time for the industry, warns Nick Green, managing director of Stored Crop Conservation (SCC). It is now that we have to implement the code of best practice agreed by members of the cross-industry CIPC Stewardship Scheme and make absolutely certain of strict adherence to dosage rates.
There is no maybe about it - it has to be done to prove to the Pesticides Safety Directorate that the industry can comply with the new regulations, or we risk losing CIPC altogether.
SCC is the only fogging contractor working on the CIPC trials with British Potato at its research site at Sutton Bridge, Lincolnshire, so we are very much involved in finding the best way forward for both store managers and fogging operators. As such, we have led the way in suggesting changes that can be made to improve accountability and quality control - something we have always strived for within our business.
Fogging operators must be certified to PA1 and PA9 level - even experienced operators will need to re-train to use the specialised equipment - and the equipment itself must now undergo National Sprayer Testing Scheme approved testing, which can only be undertaken by an NSTS-qualified tester. At SCC, we are proud of the fact that all our dedicated fogging machines were the first to undergo examination and be successfully tested to this standard.
SCC, as it is now known, was set up by my father more than 30 years ago and remains a family-owned and run company. We are pleased to provide a personal service to our customers and take pride in helping them look after their crops.
Our knowledge of the stored crop industry and treatment of stored potatoes led to us being involved in the CIPC Stewardship Scheme and the fogging trials. Our aim is to ensure that we maintain industry choice to use CIPC. The trials that we are involved in, to ensure working within the new regulations is both effective and efficient, have been very interesting. The initial box store trials started earlier this year and a full programme of research, funded by the Potato Council, is ongoing. Inevitably, there is much work still to do before any official results can be released.
That is why it is so important this season that contractors and store managers work closely together and do not exceed the new regulation dosage rates of 36g per tonne (fresh) and 63.75g per tonne (processed) and stay beneath the new level of 10mg/kg maximum residue limit.
Managers can help themselves - and the industry - by only employing contractors who maintain high standards of work ethics by checking that the company is appropriately accredited and its operators correctly certified. All contractors should provide full traceability to standards set by the Assured Produce Scheme.
In a perfect world, we would all operate from BASIS-registered premises with best practice chemical stores and facilities for cleaning machines. Cross-contamination can be a real problem if the contractor uses multi-function machines that are not properly cleansed.
I would encourage all store managers to listen to their contractor’s pre-storage advice; getting it right with layout, fans, airflow, ventilation and air ducts before bringing potatoes into store can save a lot of heartache - and money.
CIPC is still under the spotlight and I feel that it would benefit all fogging companies to set up a contractors’ group where we can exchange ideas and experiences. We may be competitors in business, but unless we get it right every time, we won’t have a business to compete in.
SCC will be attending British Potato 2009 and we will be very happy to meet store managers who want to discuss the new CIPC regulations or just need some information or guidance.
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