IFA President John Bryan has warned that potato growers are facing wipeout as retailers and packers pocket up to 80% of the final consumer price and farmers go broke.
John Bryan said, “With average farmgate prices at €130 per tonne, and retail prices averaging €500 per tonne, it is clear for anyone to see that the situation is totally inequitable. Farmers need a doubling of the price paid to them to break even, and I am challenging the retail multiple bosses to bring more equity into the situation for growers.”
He continued, “The excessive profiteering must end and growers must get fair play. It is not acceptable that retailers drive primary producers into bankruptcy because of a short-term oversupply situation.”
After a season of over production in 2010, which resulted in the export of close to 70,000 tonnes of potatoes, Irish potato growers made a conscious business decision to reduce the national planted acreage by up to 13% last year. After a favourable growing season and higher than normal yields created a short term over supply in the industry, Irish potato production was back by an estimated 60,000 tonnes which would suggest that the market is more in balance than in oversupply.
IFA National Potato Chairman Thomas Carpenter noted, “Large retail multiples sell up to 80% of fresh potatoes grown in Ireland and therefore have significant control in this sector. Retailers, as key stakeholders in the food supply chain, have a responsibility to their growers and to the future of the industry in this country. They must act now.”