UK white potato prices have reached record levels for the second year in a row according to price monitoring service Mintec.
The Mintec Benchmark for English white potatoes reached a new all-time high at £750/tonne on the 11 June, up 87.5% on last year. Harry Campbell of Mintec commented, “This marks the second consecutive year of record highs, underscoring the impact of climate change on weather patterns. Market players indicate a shift towards contract-based purchasing, but growers are hesitant to commit too much of their crop, preferring to capitalise on higher free-buy prices.”
Mintec also reported that industry sources expect supplies to remain tight until the maincrop harvest which is expected in mid-July for English white potatoes, with one source noting, “Stores are getting empty and switched off” as growers sell off their remaining stock. Each week the harvest is delayed will keep prices elevated. Growers, who faced planting delays, were hoping for warm weather to boost crop growth, but this has not occurred, analysts added.
The high prices coincided with a warning from the National Farmers Union (NFU) about the combined effects of weather, input costs and trade on the crop. The Union called for political action as it pointed out that growers have reported significant delays in the lifting of the 2023 crop and a further delay in planting the 2024 crop. At the same time, costs of key inputs like fertiliser and energy for storing potatoes have remained unsustainably high, with the compound cost of production in the sector increasing by 28% over the past two years.
NFU Potato Policy Group vice chair Alastair Heath explained, “The potato is versatile, nutritious and affordable, making it not only a national favourite but a staple part of most people’s diets.
“Yet the future of British potatoes is at risk. A number of growers have made the difficult choice to reduce production to minimise losses, and the relentless wet weather has put many more growers weeks behind schedule. For some, profits have been all but wiped out.
“Business confidence is low and investment has become a far-away concept, which is putting pressure on British potato supplies in the short-term. While it’s unlikely to lead to empty shelves this year, this pressure on the homegrown crop is an indication that we need urgent action to prevent the situation getting worse. I believe we can and should be self-sufficient in potatoes.”
He called on the next government to focus on building resilience, confidence and profitability on UK farms.
