Costs that are putting pressure on potato production in the UK

After more than a decade of generally sustained cost increases together with the uncertainty of the UK’s future trading status post Brexit it is likely the pressure on margins will continue. Director of Andersons Eastern, Nick Blake, provides an outlook for the main cost headings in potato growing and how they add up to the average cost of production. Driven by increases in the cost of everything from plant and machinery to fertiliser and fuel, energy, labour and rent, the average cost of production has risen steadily since 2005. Machinery and labour are typically the two single biggest contributors to production costs, and the impact of each will largely depend on the structure of the business involved. Across ware and processing growers, after allowing for all costs, imputed or otherwise, we would suggest the average cost of production to be in the region of £160/t.  However this masks a significant range when adjusted for imputed costs, and yield variability. More