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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