Supply is tight in the UK potato market thanks to last year’s lower-quality crop creating storage issues and a decrease in planting area for this season.
Volume sales over Christmas were strong following robust retail promotion, meaning growers haven’t held onto stocks for longer than necessary, and many in the industry are now counting on good growing conditions for this season.
MD of AKP Group, Richard Arundel, says: “There is no doubt that the current tight supply situation here in the UK, especially on white varieties, is causing some concern. With sales having been strong over the Christmas period, this will be compounded, so growers are not particularly holding stocks longer, further reinforcing that with end of November stock levels at their lowest since 2012-13, at 2.9mt, things are only going to get tighter.”
Within the category, there has been a split in performance between various potato types, according to Greenvale commercial director, Andy Clarkson, who says baking potatoes are up in value and volume while maincrop and new potatoes are down.
“Regular promotions and features in store have also helped to drive visibility and make jacket potatoes a good choice at an accessible price,” he says. “Maincrop potatoes have been subject to strong promotional offers, especially over the Christmas period and while this has helped to boost volume it has not aided value performance.
“The promotions at Christmas pushed some volume, however this came at a price, when potatoes are going to be bought by shoppers anyway it does not make sense for the industry to be promoting deep-cut prices.”
Meanwhile on the wholesale markets, traders are also seeing strong demand for bakers. Scott Kocurek, of Premier Fruits, says: “The price of potatoes is set to rise, especially on high demand products such as a baking potato size 50/60, which is the most popular size for schools, and other cost-sensitive catering. Chipping potatoes are down in volume so we’ve had to look around for new marques.”
Fellow trader Nick Padley of P&I Side Salads says the firm is currently importing new potatoes from Cyprus as normal, but prices are high and there has been an intermittent supply since November. “We’re currently sourcing mainly British stored potatoes – our biggest sellers are chipping potatoes and reds,” he says. “However, the French Charlotte mids tend to be better quality than the English stored mids and come in at a mid-price range, meaning they sell well.”
Padley says a shift in the wholesale potato business has seen catering suppliers going direct to growers. “Because potatoes are a bulk line and there are lots of growers, traditional wholesalers are increasingly bypassed. Wholesalers have used fixed prices along the supply chain to help overcome this,” he says.
P&I Side Salads is entering its fifth season supplying Norfolk Peer, and Padley says the firm is looking to increase tonnage as it becomes more successful every year. Meanwhile, Clarkson says varietal development remains important, with recent launches including Mayan Rose and Red Fantasy.
“As the industry continues to move forward with advances in innovation, new varieties and new growing techniques, growers will need to maintain the pace of change,” he adds.
