UK new potatoes got off to a promising start this season and, with planting completed without interruptions and good reception for first arrivals on the market, it looked as if the category had moved on from the difficulties of the 2006 season.
The next few weeks are critical in terms of how the market will pan out this year, and with more 2006 crop and imports around than previously anticipated and the Jersey season still underway, UK growers are already feeling a downward pressure on price.
Early potatoes make up one of the last true seasonal markets, with genuine fluctuation in supply and demand, says Nick Tapp at Kent-based supplier St Nicholas Court Farms. But the shape of the UK new potato market has changed in recent years, adds Paul Coleman at Greenvale AP, with the number of sought-after varieties scaled right down. “It’s all about consistency and flavour - Maris Peer has the highest volumes,” he says.
The challenges of supply and demand are taking their toll on suppliers this year, with erratic weather - veering from sunny days with above-average temperatures to colder, rainy spells - resulting in consumers switching from stored product to the new-season offer and back again. The sun sells new potatoes, Coleman says, and a good forecast for the weekend - even if it proves inaccurate - sparks a notable boost in sales. “What we don’t want is cold, wet weather,” he says. “That makes people switch back to the stored crop.”
The rain in May has simultaneously boosted production and slowed down sales of new potatoes, and high prices have contributed to the slowdown in sales.
UK producers are anticipating high yields and top quality for the 2007 crop, according to Mark Taylor at Agrimarc, which co-ordinates production for Asda supplier Fenmarc Produce. He says UK new potatoes look better than they have done for the last five years. “The industry as a whole has a very professional grower base in the UK,” he adds. “The UK crop has a lot of potential this season.”
Producers have enjoyed some near perfect growing conditions, with record warmth in April followed by much-needed rain in May. “Early potatoes have had a very good season so far,” says Rob Burrow at the British Potato Council. “Yields are quite a bit higher than they were at this time last year, and the quality is exceptional.”
UK growers cannot find fault with the production of the 2007 crop. “The April sun really promoted growth and crops have been coming along nicely ever since,” says Coleman. “They are looking very good at the moment.”
The unusually high temperatures in April threw up some temporary technical challenges for UK growers but, while irrigation started in some areas at the end of the month, rain in May meant the crops are now well developed. “The rain was very welcome, but the crops have not been affected by the dry spell and there has been no negative impact on their potential,” says Coleman.
Above-average rainfall over the last six months means that, in many areas, there are good reserves of water. But July and August are critical months for temperature and dryness as the season moves forward. “If it becomes dry again, we could still be in the same situation we were in last year,” Coleman warns.
Growers need to keep an eye out on the European market, says Tapp, as the 2006 season reinforced how much it impacts the UK market. “Events on the continent can have a huge knock-on effect on what happens in the UK, so we have to keep watching what happens in Europe.”
UK new potatoes came onto the market three weeks earlier than last year, at the beginning of April. Product is coming from Cornwall and Pembrokeshire mainly, while Kent, Suffolk, Devon and south-west Scotland, amongst other areas, made token starts in mid-May. The early arrival of UK new potatoes on the market, joining the remaining 2006 crop and imports, as well as Jersey Royals, has put pressure on prices, which are lower than this time last year, says Burrow.
But UK growers cannot hold back their crop. “When potatoes are ready, they are ready,” says Richard Clark at Tesco supplier Branston Ltd. “You want a small, loose-skinned, fresh product because that is what consumers are looking for.” Growers will have to keep an eye out for the size of the tubers this season, adds Coleman. “They cannot leave the potatoes to grow,” he says. A number of producers have had to top their crops to maintain a suitable size for UK requirements.
Suppliers are hoping the market will be stabilised when the switch to the new season has been completed. “We need to realign prices as soon as possible,” adds Clark. “This means shifting out of the old season and into the new as quickly as we can.”
The retail market for UK new potatoes will move into volume in the first week of June, but it will be six to seven weeks before old season stocks are cleared, and this will require careful management.
The extended presence of the Jersey offer on the market, following stopping and starting in the planting process because of rain and hail on the island, has also thrown up challenges for the UK new potato season. An overlap with new potatoes from the mainland is on the cards. “Supplies from Cornwall, Suffolk and Pembrokeshire will be on the market in volume at the start of June,” says Coleman. “But it will be down to the retailers as to how quickly they want to switch from Jersey Royals to UK new potatoes.”
UK suppliers are wary that retailers will be put off switching to the UK crop while Jersey Royals are still on the market. “We will have to manage it as it happens,” says Coleman. “Traditionally, retailers stick with Jersey Royals for as long as they can because it’s a strong brand that consumers look out for.”
“The only way to get round it is to make the product more attractive to the consumer, with a better price, better appearance and better quality,” adds Clark.
UK new potato suppliers must find a way to single out their product in an overcrowded market. The mounting emphasis on fresh and local produce could be key to marking the arrival of UK new potatoes this season, according to Tapp. The push for local produce has gained momentum this year, says Coleman, and regional brands have added value to the category. “People look for local produce in regions like Cornwall, Suffolk and Ayrshire, so regional brands are key,” he says. “The interest in local products is less so in other areas, like East Anglia.” But an increasing number of retailers will introduce local launches with help from UK suppliers, he adds.
“We can see good anticipation for the regional offer from UK consumers,” says Taylor. “Asda stores in Wales see an uplift in volume sales when the regional offer arrives.”
Local is an important marketing message for all major retailers, says Tapp, and they are all keen to get involved. “The majority of the shopping public is pleased to see local produce and, if the retailers do it well, they will gain a greater footfall and a boost in overall sales,” he says.
St Nicholas Farms is working closely with Tesco to launch more local Kent lines, with six or seven set to come on stream from this week. But Tapp admits it can be difficult to monitor the impact of the local offer. “It’s not easy to compare sales, but it is a more complex picture than that,” he says. “The retailer that gets the best balance between local, national and worldwide offers will benefit the most.”
But some UK suppliers have started to question whether local promotions really boost demand. A limited number of regions offer genuinely local potatoes, according to Clark, and promotions based on provenance only make an impact in these areas. “We are covering all the regions that have potential, but the majority of the population lives in cities and, to most of them, potatoes are just in a bag on the shelf and they pick them up when they want them,” he says. “We are not seeing the benefits of having local sales over national. But local promotions are not detrimental to sales.”
Clark admits it is difficult to track sales of local potatoes in comparison to the national offer, as it can be difficult to get all the necessary information from the retailers, and he says Branston is working to raise awareness about seasonality, with different labels for new-season arrivals to raise the profile of the product.
The emphasis will shift from the local offer, which has proven a popular promotional tool to mark the first arrivals, to supplying the best in season from areas across the UK, Taylor says, and this will allow consumers to make the most of the UK new potato offer.
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