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I F A P O TAT O N E W S L E T T E R

Chairman’s Message The 2014/2015 marketing season has proved to be another very difficult one for potato growers. While the 2014 area planted was back by 13%, yields in the main crop varieties increased by 10% on 2013. European plantings increased by 4%, with total production up by 16%, which impacted negatively on our domestic market. Last September, as the new season main crop potatoes entered the market, the old season crop was making as little as €80/t. While grower prices did improve for the new early crop, since last October the price received by growers has steadily fallen and again growers are taking significant losses.

The IFA Potato Committee has met with merchants and retailers on a number of occasions to highlight the unsustainable losses being experienced by growers. At recent IFA potato grower meetings in Meath, Cork, Wexford and Donegal the importance of growing for specific markets and not engaging in speculative planting was emphasised. Growers urgently need to receive a price for their potatoes to cover their costs, which at this time of year include the sizable cost of cold storage, as they will not sustain a third year of below-cost returns. The market for potatoes has changed considerably in recent years, with 80% of potatoes now sold through the large retailers, resulting in major contraction for other outlets. The free-buy market continues to decline; this and other market factors should be priorities when considering plantings for 2015. Good quality washing product will continue to command a premium and improved prices. Notwithstanding this, we must look at all aspects to survive, including the structure of the industry. All opportunities must be explored, particularly the fresh chip market, the production of baby potatoes and the seed sector.

Eddie Doyle, Chairman

Potato and Vegetable Supermarket Protest

EU Commission sanctions funding for Potato Promotion

Potato Potential IFA has welcomed the EU Commission’s decision to approve 50% EU co-funding for Potato Potential, a programme to promote potatoes on the Irish and UK markets. The total budget is €4.3m, with €1m for Ireland over three years. The application was developed by Bord Bia in conjunction with the IFA on behalf of growers and the Irish Potato Federation. The promotion will start in September 2015 and will be targeted at raising awareness among Irish and British consumers of the versatility and nutritional value of the potato. The Potato Potential programme aims to inform and educate consumers, through key opinion influencers, together with highly-targeted activities demonstrating that potatoes are convenient, versatile and can be used in innovative ways suitable to our modern lifestyle. Irish growers are contributing €205,000 over three years. In 2014, growers committed to contributing €8/ac grown for each of the three years 2014, 2015 and 2016. Any grower who has yet to commit funding, please contact IFA - details below. National Potato Day National Potato Day was held on the 3rd October 2014. Bord Bia, in conjunction with the IFA and the IPF launched the day at the Boxty House Restaurant, Dublin. The campaign mainly focused on social media using www.potato.ie and a number of local and national radio stations including ‘Country Wide’ on Radio One. A number of IFA members hosted events on their farms throughout the country ranging from school visits to farms, open farms, cooking demos, supermarket tastings, etc.

IFA National Potato Planting Survey 2014

Changes within varieties 2014 v 2013

Rooster—12% reduction

Kerrs Pinks—25% reduction

Earlies (Homeguard and Premier) - 39% reduction

Queens—no reduction

Golden Wonder—43% reduction

Records—34% reduction

Processing—no change

Salads—no change

Changes in % area occupied by variety in last 5 years from IFA Planting Surveys Variety 2014 v 2013 v 2012 v2011v2010 Source: IFA Potato Grower Survey 2014

Variety Rooster K Pink Queens G Wonder Record Earlies Processing Salads Whites

% Area 2014 60.1 8.3 8.3 1.8 0.6 1.5 11 1.4 7.0

% Area 2013 59.7 9.7 7.6 2.8 0.8 2.2 8.3 1.2 7.7

% Area 2012 57.8 9.2 7.5 3.3 1.1 2.0 10.2 1.7 7.2

% Area 2011 55.6 9.8 7.8 3.1 1.9 3.1 10 1.2 7.2

% Area 2010 51.9 15.1 8.6 4.0 2.7 2.6 7.7 0.6 5.9

Potato Area as per Single Farm Payment applications

Since 2009, the IFA Potato Committee has collected information from growers to measure the size of the potato industry. The survey collects vital data on area sown and variety breakdown. This data, coupled with total area figures from the DAFM SFP system and Bord Bia / Teagasc yield digs, give an annual comprehensive view of the production profile in Ireland. 164 growers participated in the survey, which represented 75% of the total area planted. Total plantings were back by 13% from 2013 but there were significant differences in the percentage decreases between varieties, as can be seen below. The 2015 plantings are now almost complete. However, it is important to emphasise that some varieties (i.e. Kerrs Pinks and some Whites) which had significant acreage reductions in 2014 were coming off a high in 2013 where plantings had almost doubled from the previous year. These varieties may have fared better in the 2014 market compared to Rooster, but this market is still over-supplied and further reductions in plantings for 2015 are required.

SFP Applicatons 2010 2011 2012 2013 2014 Seed (ha) 483 310 320 297 218 Maincrop (ha) 10250 8780 7838 9445 8200 Early (ha) 1271 1146 764 920 922

Photos from National Potato Day

Implications of New Basic Payment Scheme (BPS) for 2015

Changes in the CAP will have significant implications for all tillage growers. Potato growers, in particular, will need to establish if rented land is adding to their profit or not. Land not making a positive contribution should be dropped this year, as the reference area for basic payments in the future will be based on the lesser area declared in 2013 or 2015, but the actual payment will be fixed relative to 2014. The IFA Potato Committee has had a series of meetings with the Department to convey the negative impact the new BPS will have on the sector. The main issues for potato growers are in the greening measures and how they impact on both their applications and the applications of those from whom they lease land who are still claiming the entitlements. This is particularly relevant to farmers in family arrangements, etc. where the potato crop may be concentrated under one applicant’s number and, therefore, there may be problems meeting the requirements under the two and three crop rules under crop diversification. IFA has stressed to the Department the importance to potato growers of existing share-farming agreements, such as the Teagasc model, and that these would be upheld under the new BPS.

Seed Potatoes

Change to EU Directive on the marketing of Seed Potatoes In 2014, the EU published legislation to change the marketing of seed potatoes with the objective of harmonising nomenclature and to set down minimum quality standards for seed potatoes. Seed potatoes marketed after 1st January 2016 will have to comply with new the requirements, including seed potatoes produced in 2015 for placement on the market in 2016. There are some changes in the category and grade tolerances but the most important change is in the number of field generations where a maximum of 7 field generations is allowed (including pre-basic). This is a mandatory requirement.

Seed Potato Seminar Previously, Ireland had a thriving seed potato export industry, which today has deteriorated to the point that we import much of what we plant. Certified seed planted in the last five years has fallen from 483ha to 218 ha. Ireland has the potential to rejuvenate this sector like Scotland, where 13,300ha of seed was planted in 2014, of which over 80,000t is exported. To achieve this, all stakeholders must create an environment and structure where the sector can thrive. Against this background, IFA engagement with the Department of Agriculture, Bord Bia, Teagasc and the seed companies resulted in a seminar/workshop to address the important aspects of seed potato production in Ireland. IFA will continue to address the issues that are undermining the sector in order to restore confidence on all sides. Ware potato growers should, where possible, try to source Irish grown seed and insist that seed companies increase the area of home grown seed.

Potato Growers’ Registration Numbers and Traceability

All potatoes for sale in Ireland must be clearly labelled with variety, country of origin and a grower’s registration number. Where potatoes are packed by a non-grower, or a packer/grower packing other growers potatoes, the packer’s registration number and also the individual grower’s registration number must be on the packaging. IFA has serious concerns that due to the availability of cheap foreign imports there is serious malpractice in sections of the industry. Over the past number of months during monitoring at retail level, the following issues have come to the attention of the IFA:

imported potatoes falsely labelled as Irish;

incorrect variety displayed or no variety displayed;

no grower registration number displayed; and,

packer grower number displayed but not the ‘actual grower’ number on pack. In all cases, these issues were brought to the attention of the DAFM and the IFA liaises with the authorities on a continual basis. As well as breaching the Potato Grower and Packers Act, mislabelling is also a breach of EU hygiene regulations.

Seed Potato Seminar March 2015

Industry initiative to increase the production of salad potatoes

It is estimated that the market for Salad / Baby potatoes in Ireland could be 20,000t per annum with Irish production accounting for no more than 4,000t. With 80% of our salad potato consumption imported each year, there is an opportunity for Irish growers in this niche market. Apart from the obvious benefit of import substitution, increasing the acreage of salad potatoes would help some growers to diversify from traditional ware production. Production of this crop is very specialised, requiring in-depth knowledge and skill, unique soil types, machinery, irrigation etc. The market for the end product is the greatest challenge as there is only a market for premium product, with no secondary outlets. In addressing this issue, IFA together with Teagasc and Bord Bia have agreed to collaborate on a salad potato initiative, with the primary objective to increase the level of information and support to existing salad potato growers and ultimately to increase the quantity of salad potatoes grown. This will involve equipping the growers with the necessary skills and knowledge.

The first part of the program involves the planting of trail varieties grown on a commercial basis on a demonstration farm in Co. Wexford. This trial will be supervised by Teagasc and an external consultant with the prospect of holding a number of open evenings during the season. In addition, a study field trip has been organised to the east of England in early June to expand our knowledge of their salad potato production methods.

Retail Legislation

The Competition and Consumer Protection Act 2014 is a first attempt by Government to improve the functioning of the food supply chain. While IFA believes that the legislation does not go far enough, the new Grocery Regulations, currently under consultation and due to be commenced this year, will be judged by suppliers and farmers on their effectiveness in rebalancing power in the food supply chain. While the legislation fails to address a number of issues necessary to restore equity in the supply chain and curb the dominance of the retail multiples, the biggest of these issues is the failure by Government to prohibit ‘below-cost selling’ in the legislation and to appoint an Independent Ombudsman to oversee and implement the regulations. As part of the legislation, the Competition and Consumer Protection Commission (CCPC) was created from an amalgamation of the Competition Authority and National Consumer Agency. It is critical that the new CCPC takes a proactive role in ensuring full compliance by retailers with their obligations under the new Regulations. The CCPC will need to demonstrate its willingness to take on board complaints made by suppliers and primary producers in confidence, and initiate its own investigations into retail behaviour. The CCPC must set the tone for rigorous implementation of the Regulations by issuing contravention notices and naming and shaming retailers found in breach of the Regulations, as well as taking legal proceedings when necessary. The Regulations will apply to commercial relationships and contracts between suppliers and retailers / merchants with a turnover exceeding €50m engaged in the wholesale or retail of grocery goods (food and drink). IFA has made a submission to the Department detailing certain amendments to the draft regulations. These regulations will relate to issues such as payment terms and conditions, promotions, marketing costs, supply of product etc. Contracts will be compulsory and must abide by the Regulations.

National Potato Day

National Potato Day

Compiled by: Pat Farrell, Potato and Fresh Produce Development Officer Contact: Address: IFA, Farm Centre, Bluebell, Dublin 12; Telephone: 087 9488039; email: patrickfarrell@ifa.ie