Mixed fortunes for potato growers as higher costs hit sector
© GNP The UK potato sector bounced back slightly in 2024, following challenging weather conditions during the previous year.
However, production costs have soared in recent years with higher energy, labour, machinery and interest costs all hitting profit margins.
Defra’s June census showed that the UK potato area increased by 3.1% to 118,000ha during 2024.
See also: Nuffield tour shows a way ahead for ‘bleak’ potato sector
Meanwhile, results from the Farm Business Survey put potato yields in England at 43t/ha for 2023-24 and prices were up by 51% on the year at £279/t.
Harvest yields and quality have varied considerably between regions, and early industry forecasts pegged the UK crop at between 4-4.5m tonnes this year.
Graham Bannister, consultant at GB Potatoes, told Farmers Weekly that growers in Scotland, Yorkshire, and the North West had generally got everything out the ground reasonably well, while wet conditions in the South West and West Midlands had made it more difficult.
“The market has settled down following peaks in the trade for those that weren’t on contract. Some growers did very well, but yields precluded people from making a fortune because most growers have something on contract,” said Mr Bannister.
He added that there still seems to be good demand at present and a relatively small crop should support prices going forward, setting the scene positively for next season.
The numbers
- 118,000 UK potato area (ha) in 2024
- 279 Farmgate output price (£/t) for potatoes for 2023-24 crop year
- 4-4.5m UK production estimate (tonnes) for 2024 crop
Seed supply
Concerns over the availability of good-quality seed could pose a potential issue for the sector in the coming year. Mr Bannister said: “Access to preferred varieties might not be guaranteed.”
Markets
Free-buy markets for potatoes look relatively firm and strong export demand has also lifted the trade.
Prices vary depending on quality and region, with reports of Whites ranging from £400-£500/t, Sagitta typically at £300-£350/t, and Maris Piper at £350-£450/t free buy.
Europe
European potato futures have climbed since the start of the month and stood at €29.60/100kg (£245/t) on 20 December for the April 2025 contract.
Dutch processing potatoes averaged £165/t in early December, based on prices collected by market insight firm Expana, up by 18% on the month.
The 2024 potato harvest was another difficult season for European farmers, with soaring production costs and slightly lower yields according to Harry Campbell, market reporter at Expana.
Mr Campbell said: “This seasonal price uptick follows the typical post-harvest storage period. However, the current price remains 20% lower year-over-year, indicating a more successful harvest than 2023’s wet and problematic season.
“As the financial and operational burdens of the 2024 potato harvest intensify, concerns grow regarding the sustainability of smaller EU potato farms.
“Rising risks and expenses may prompt some growers to exit the market, potentially leading to further industry consolidation”
New chairman at GB Potatoes
Alex Godfrey was elected as the new chairman of GB Potatoes at the organisation’s AGM on 12 December.
He will take over from Mark Taylor and will initially serve for a three year-period.
Mr Godfrey said: “I am looking forward to my new role in GB Potatoes as the organisation really starts to gain momentum and delivers on its original premise.
“Under Mark’s leadership, the organisation has achieved many things and established itself to become an organisation that truly represents the whole of the potato industry across GB.”