The president of the Irish Farmers’ Association (IFA), Tim Cullinan is calling for an immediate and significant increase in retail potato prices.
He addressed a national meeting of growers in Dublin last night (March 15) during which it was agreed that the association will seek a meeting with Ireland’s five main food retailers.
Those in attendance also agreed that potato growers would stop supplying these supermarkets until their demands are met.
The meeting was informed that five retailers – Dunnes Stores, Tesco, SuperValu, Aldi and Lidl – account for 92% of fresh potato sales in Ireland.
Potato prices
During 2022, there were significant price increases achieved across all the main food categories in shops.
The average rate of retail inflation came in at 16.3%. The significant exception to this trend was potatoes with retail prices increasing by only 1.4%
Tim Cullinan stressed the need for any increase in potato retail price to be passed back to growers in full.
The meeting heard that growers need a price now that meets their cost of production while also providing a margin to live off.
Retailers must also commit to a sliding increase in price, that fully reflects growers’ monthly storage and other associated costs.
Teagasc potato specialist Shay Phelan also addressed the meeting. He reviewed the input prices that will confront potato growers in 2023, concluding that a minimum cost of production figure will be in the region of €266/t.
Phelan stressed that each grower will have a different cost of production profile and that the Teagasc estimate reflected the basic requirements of potato farmers this year.
He confirmed that all costs incurred by growers will rise this year.
He specifically cited the year-on-year increase in the price of plant protection products with some branded options costing up to 50% more, relative to 2022.
Fertiliser
The meeting also discussed the issue of fertiliser prices, Cullinan confirmed that the IFA imported nitrogen (N) fertiliser from Northern Ireland earlier in the week at a price of €560/t.
He further indicated that the action had had the desired effect on the Irish market with calcium ammonium nitrate (CAN) reportedly available in the Wexford area yesterday (March 15) at €540/t.
Looking to the future, the meeting was told that the appointment of a Food Regulator should make a difference in securing balance across Irish farming and food supply chains.
It is envisaged that the first person to take up the role of chief executive will be appointed very shortly with the accompanying legislation making its way through the Dáil at the present time.