Retailers have been urged to act swiftly to restore equity to the fresh potato supply chain as packers and growers have been plunged into crisis.
David Walker, chairman of the Fresh Potato Suppliers’ Association (FPSA), said: “Retailers talk a lot about sustainability of supply chains. This is the time to act.”
Extreme weather conditions at planting and during the production and harvesting period have combined, along with a three-year period of low market pricing, to threaten the viability of the fresh potato supply this season.
FPSA represents all nine major packers of potatoes to the UK’s top five supermarkets. Walker said: “I know these guys and they are not crying wolf… they have got growers who cannot supply them or who are lifting potatoes with three times as much soil as usual so they are having to double grade. It can be costing about £200 a tonne, but they are lucky, if they are in a contract, to get £150 a tonne. Growers need to be looking at getting £250 a tonne on a regular basis.”
Packers are warning that there are just not enough potatoes to fulfil retailer contracts and packers are having to buy on the UK open market or import, losing about £100 a tonne in so doing.
“There is now a serious short-term survival risk,” warned Walker, “but as prices have been held down over the past three plus years, there is a need not just for an adjustment for this crisis but longer term. To have a sustainable supply chain of professional growers and packers, an increase needs to be maintained.
“No one begrudges the retailers their margins; they are getting their margin and they are deserving of it, but so is everybody else in the chain.” He pointed to retail tickets on some potato lines equating to £1,500 a tonne this week.
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