IFA expects wholesalers to absorb rise in potato prices

The Irish Farmers Association expects potato wholesalers to absorb any increased costs arising from a three-year low in potato…

The Irish Farmers Association expects potato wholesalers to absorb any increased costs arising from a three-year low in potato stocks, it said yesterday.

Mr Malachy Mitchell, IFA potato marketing co-ordinator, confirmed stocks were 10,000 tonnes less than at this time last year and 20,000 tonnes less than in January 2000.

"A survey we carried out in late January showed there are just over 90,000 tonnes of marketable stocks on hand and this should be sufficient to cover the 18 weeks ahead until the first early crops come on line," he said.

He said the organisation was not attempting to create a scare to increase prices because it was in farmers' interest that potato consumption remained high.

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However, he said, supply of the Kerr's Pink variety is significantly down this season and there are already signs of a rise in prices.

Mr Mitchell said he expected potato wholesalers to absorb any increases paid to growers because they had more than sufficient margins to cover any increased costs.

He said it appeared to the growers there was more than sufficient profits being taken by the wholesalers and retailers to absorb any increases. He said if there was mild weather the 40 per cent of stocks not being stored in temperature controlled conditions could result in stock shortages, and that importers would find a similar shortage on the Continent and Britain.

Nearly 45 per cent of Irish ware (table) potatoes are produced by only 50 growers in the Republic, where the number of farmers growing potatoes has fallen to 900.