Market report: Stronger potato trade as stock moves from stores

Potato prices jumped by almost £12/t in the week to 12 November, to a GB average of £144.97/t ex-farm.

Free market prices made strong headway, up by £13/t to £154.76/t, as buyers sought to bring supplies out of store to supplement contract arrangements, said the Potato Council’s latest report.

Packers were increasing free-market purchases to compensate for some stocks which were showing signs of deterioration. “Better supplies are tightening and grower confidence is high,” said the report. “A solid trade developed last week and prices are tending to firm slowly. However, buyers are resisting and top-end prices are still short of many growers’ expectations.”

Farmers supplying the bagged trade were also confident about the season ahead, said the report. “Some are attempting to push prices higher for quality material but, with a slow demand continuing in most regions, buyers are resisting. The exception is for local sales and farm shop trade where demand is reported to be good and prices remain firm.”

GB potato production fell by 6.1% in 2010, with the council estimating the crop at 5.8m tonnes. Planted area was 2.6% lower, year-on-year, at 126,887ha, and yields fell by 3.6% to average 45.8t/ha, it said.