Download National Potato Committee - Irish Farmers` Association

IFA Potato Section Report
Achievements and Work Done
2011 has been an extremely difficult season for potato producers. While the planting season was good,
the early growing season supply increased ahead of demand very quickly, once more placing undue
pressure on farm gate price. Despite a 13% reduction in the overall planted area, as a direct response
to difficult market trading in the last three years, there still remains a surplus to demand in the market.
Average yields are about 30% above normal market surplus.
This surplus, coupled with increased downward price pressure has effectively collapsed the farm gate
price this year. A number of factors contribute to this:
 Increased pressure from supermarkets - discounting at retail level/loss leaders
 Significant pressure at wholesale level for market share
 Increased financial pressure on growers driving the decision to sell
 Overall lack of confidence in trading relationships between all parties
 Cheaper imports available from the UK at certain times of the year
Planned production to match market demand is an essential requirement in our industry to avoid the
downward pressure associated with market surpluses.
Market Price Reporting
Market price information is collected weekly and sent to growers via text message and published on
ifarm.ie. This information is also published in the market section of the Irish Farmers’ Journal along with
information in relation to stocks and market trends.
Trends & Challenges in Irish Potato Production
The IFA Potato Committee published a report in November, Trends & Challenges in Irish Potato
Production. This report provides vital up-to-date information to potato growers on trends in production
acreages and varieties and the figures for production costs. It also sets out the challenges for the sector
as follows:
 concentration of the buying power of the top three multiples;
 loss leader approach;
 increased integration of the potato supply chain;
 direct competition between growers and merchants/packers;
 extreme weather condition losses;
 availability of credit;
 threat of imports, and
 changing consumption patterns.
IFA’s recommendations to meet these challenges are:
 statutory Code of Practice for the retail sector;
 supply-demand balance;
 consolidate and concentrate supply;
 improve price transparency;
 audited and traceable branding system;
 import recording;
 marketing and targeted promotions;
 on-farm investment;
 recognition of the cost of production
Potato Exports
To capitalise on the shortage of potatoes in other countries, IFA was actively involved at the end of
2010 and early 2011 with the Department and potato merchants in coordinating shipments of potatoes
to Eastern Europe and Russia both by sea and road. Approx. 70,000t were exported.
Priorities for 2012
Issues with Retailers
Retailers continue to use their dominance to influence grower returns. Predatory pricing by retailers is
the single biggest threat to potato growers who cannot survive in the current environment of the
supermarket price war. IFA will continue to target supermarkets’ use of food as a loss leader and
expose the exploitation of producers.
Grower Communication
IFA will be meeting with potato growers early in 2012 to discuss problems in the market place. Growers
must take on board the importance of reducing their acreage to meet with market demand. More
efficient and accurate communications between the industry and growers is essential. This will be
carried out by development of website applications on ifarm.ie and the IFA website and more efficient
use of text messaging and grower meetings.
Wholesale and Peeling Market
The wholesale market and peeling markets have been dominated by imports and low pricing. IFA will
work closely with key players in this industry in 2012 in an attempt to reverse this trend.
Bord Bia Quality Assurance Scheme & Promotion of Potatoes
IFA is working with Bord Bia on the Quality Assurance scheme to address potato growers' issues with
the existing scheme. IFA will work with Bord Bia on promotional activity programs for potatoes.
Market Co-Ordination
IFA is continuously working towards better market co-ordination from growers’ rights through to
consumer. Main focus is to ensure growers are in best possible trading position.
Cadmium
IFA will continue to meet with the Department, Teagasc and relevant agencies on the issue of
Cadmium levels in soils and its potential threat to the potato and vegetable growing sector in some
parts of the country.
Potato Conference 2012
The National Potato Conference Tackling Market Forces is taking place on Wednesday 22 February
2012.
Incredible Edibles
IFA will continue its support for Agriaware’s school growing competition ‘Incredible Edibles’ in 2012 of
which potatoes is one the five crops being grown.
Thomas Carpenter
Chairman
Elaine Farrell
Executive
Matt Molloy
Potato & Fresh Produce Development Officer