Throughout 2022, potato growers in the EU were impacted by higher production costs, largely from energy, fertiliser and transportation. As Alice Witchalls reports in a news story for Mintec, higher costs are weighing on growers’ profit margins and are driving the cost of cultivation and storage to unsustainable levels.
In the 2022/23 season, significant driving factors, including higher input costs, have not been fully reflected in higher retail pricing. According to market sources, contract prices have risen by 20%-30% across the EU for the 2023/24 marketing year (MY) to account for this.
In the absence of financial government support for farmers, the industry’s profitability and sustainability are under threat. There is a risk that in consecutive seasons some farmers will opt to grow alternative crops, such as cereal or oilseeds, to achieve higher returns.