Potato Council Report June 2021
Market Report
Low | High | Average | |
Rooster box | €320 | €380 | €350 |
Rooster 10 kg | €3.30 | €3.80 | €3.50 |
Whites Box | €300 | €350 | €320 |
Kerr Pinks | €5.00 | €5.50 | €5.30 |
Retail demand remains buoyant albeit slighted reduced as the weather improves. Restaurants will re-open for indoor dining in and early dining and this should provide a well needed boost for the food service sector. Current weather conditions have drove on crop development and is welcomed by growers. Reports indicate that it will be next week before significant lifting of early varieties, home guard and Premier will commence. Stocks of good quality packing material continue to tighten and command a premium price, however, most of this is offset by storage costs.
In the U.K. the hospitality trade has seen an uplift since the food service sector has re-opened. Reports indicate that liftings are a ‘week or two’ behind schedule. In Europe, physical prices in the processing sector remain firm and there have been some increases noted again in the Netherlands and Belgium. Factories are reported to be running at full capacity in anticipation of a gradual end to lock down.
Activity since last Council
- A National Potato Committee meeting was held on the 11th of May. Sean Ryan was elected as vice chair of the committee.
- The IFA Employment Seminar took place on the 6th of May via Microsoft teams. IFA’s new employment service was detailed as part of the event.
- A stakeholder meeting was held last month on the Potato Promotions. IFA fed into proposed activities. The promotion is currently underway and it has been very successful to date. Growers are reminded to support the promotion if they have not already done so.
- IFA completed a stocks survey at the end of May. As it stands stocks are marginally down on this time last year. It will most likely be a later 2021 season so stocks are expected to significantly tighten before adequate of new main crop is available.
- A number of growers supplying the catering and fresh chip sectors have continued to be seriously affected by the lack of demand due to the impact of the pandemic and have had to send potatoes for cattle feed. IFA continue to engage with DAFM on this.
- IFA continues to engage with all retailers to discuss the upcoming season and convey growers increased input costs and issues around excessive tare levels.
- A Potato Development Group meeting was help on the 21st of April.
- IFA completed a submission to the Public Consultation on the Food Ombudsman last month.
EU/COPA developments
- The E.U. has declined a request for “equivalence” regarding the export of seed from the U.K to Europe. The decision has been challenged and an application for “substantial equivalence” is now being pursued. IFA continues to lobby on this matter.
Upcoming Activity/Events
- 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 surveys
- There will be further interaction with DAFM regarding potato storage equipment under TAMS and to invest in the seed potato sector.
- The 2021 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.
- IFA will be lobbying to include the sectors of horticulture affected by Brexit in the Brexit Adjustment Reserve (BAR) fund announced by the EU.
- IFA will continue with the campaign for the emergency approval of Diquat for the 2021 season.
- IFA is preparing a submission on the draft Agri Food Strategy in which the tillage/horticulture sector will be explicitly mentioned.