Potato Council Report July 2022

Market Report 12.07.22 

	Low	High	Average
Rooster box	€380	€450	€400
Rooster 10 kg	€4	€5	€4.50
Kerr Pinks	€5	€6	€5.50

Home consumption continues to remain similar to 2019 levels before the onset of the pandemic for both retail and processing markets. The same trend is currently experienced across other fresh produce items also. Queens continue to be lifted this week with more volumes now available. Again, eating quality is reported to be excellent and yields are above average. Trade remains subdued maincrop material in stores which is putting pressure on growers carrying the burden of increased energy costs.  

Across Europe, buyers for main processing factories are now concentrating on contracts and demand for free buy has “dried up” apart from some excess to contract. The new crop is reported to be yielding well and “a week ahead” of last year. 

The area of seed production in Scotland has decreased this year (10,219 ha vs 10,461ha) following the fallout our from Brexit.  In the U.K. early maturing varieties have performed well and many maincrops look very well but quality issues are starting to appear. All areas apart from the North West are becoming dry and irrigation over the past four weeks has been hindered by strong winds. Common Scab is being noted in crops down the eastern side of the country.  

Activity since last Council  

• A Potato Committee meeting took place on Monday the 16^th of May in the Louis Fitzgerald Hotel Dublin. Agenda items included 2022 markets, retail engagement, input costs, seed potato and the potato promotion.   

• IFA made a submission on the Brexit Adjustment Reserve in which support for the seed sector was explicitly detailed.  

• The following graph illustrates the planted acreage of potatoes from 2019-2022 according to BPS planted figures.  

	2019	2020	2021	2022	22vs21
Potatoes- Early	611	792	694	680	14
Potatoes- Maincrop	7808	7842	7976	7593	383
Potatoes – Seed	213	229	167	196	28

• Following an extensive lobby, IFA met with Minister McConalogue in May to discuss the proposed new seed investment scheme and also difficulties in the sector.  
• The new €3M Seed Potato Scheme will provide capital grant aid at a rate of up to 40% to all approved investments with qualifying young farmers receiving up to 60%. Applications are now closed.  
• IFA continues a campaign to highlight the impact of spiralling input costs on potato growers. 
• The EU Potato Promotion activation for 2022 is under way. This is the final year of the successful campaign targeting millennial consumption. Growers are reminded to contribute to the very worthwhile campaign which is 80% funded from the EU. A letter and update booklet were issued to growers recently. 

• IFA attended a potato promotion meeting with all industry stakeholders in July to discuss planned activities for the remained of the year. A feature on early potatoes will commence this week 
• IFA put forward a submission for an emergency use of diquat again this year. A meeting with the Minister has been requested.  
• IFA held three regional early potato meetings in Wexford, Cork and Meath to discuss the early season to date and projected challenges for the sector. 
• The results of the IFA early acreage planted survey indicate that the acreage of early potatoes has slightly decreased on 2021 plantings. The area of Premiere and Home Guard remained the same as 2021 with a slight reduction in the area of Queens.  
• IFA continues to highlight key issues identified in the report commissioned by economist Jim Power – Retail Price Compression Threatens the Viability of Irish Horticulture. The report calls for Government to move quickly to restore the ban on below-cost selling of food. Potatoes are detailed in the report and the full report can be found here.  

• IFA continues to engage with all retailers to discuss the upcoming season and convey growers increased input costs and issues around excessive tare levels.  
• The world potato congress took place in the RDS from the 30^th of May to the 1^st of June. The event was very successful with over 700 international delegates.  

Upcoming Activity/Events 

• IFA will continue to liaise with DAFM in the coming weeks to further on the diquat derogation and support for the sector.  

• IFA continues to engage with retailers on spiralling input costs and setting up meetings with retailer buyers at this critical period.  

• IFA will continue to demand that packers and retailers pay sustainable potato farm gate prices.  

• IFA will continue to contact growers to ensure they are aware of the costs of production and engage in stocks/acreage surveys. 

• The 2022 European Potato Promotion is now underway and performing very well. Growers have received a letter to support this initiative and the potato committee are continuing to encourage growers to support the campaign.