Potato planting is under threat as high input costs will lead to a decline in production unless growers are supported, the national potato chair of the Irish Farmers’ Association (IFA), Sean Ryan has said.
While the margin for growing potatoes has always been tight, according to Ryan, the upcoming season will not be viable if growers don’t receive price increases.
“Many growers will simply not plant,” he said, and added that some had to pay up-front to secure necessary inputs this spring. The IFA national potato chair explained:
“The planting season is currently underway and there are already reports of growers cutting back on production because of costs.”
Growers storing potatoes are hit by soaring energy costs whilst receiving the same or less for their produce than they would have last autumn, according to Ryan.
He added that this is not a sustainable model and will lead to supply issues before new-season stocks become available next year.
In February alone, aggregate input prices rose by over 28% with increases in certain fertilisers (+180%); fuel (+38.5%); feed (+20%); and electricity (+22%), according to the IFA national potato chair.
He explained that growers are price takers and cannot pass on the added cost of production to others.
Therefore, the government must provide significant financial support to the sector, the IFA national potato chair said, to help growers survive this current crisis.
According to a report by economist Jim Power, commissioned by the IFA, the national potato chair explained:
“Potatoes were the only fresh produce that declined at retail level last year (-4.7%). Irish consumers and retailers must place value on home-grown produce.”
All retailers need to pay more for wholesale potatoes, and provide a guaranteed base price for this autumn to give growers certainty to plant new-season potatoes, the IFA national potato chair said.