Retail potato prices will have to rise to reflect the increased costs incurred by farmers this year, the IFA has warned.

Teagasc estimates put the average cost of growing an acre of potatoes this year at €5,000 (including land rental charges and six months of storage) due to higher fertiliser, electricity and fuel prices.

The overall cost of planting, harvesting and storing potatoes has increased by €500/ac since January when Teagasc published its initial estimates for 2022.

Seán Ryan, the IFA national potato chair, pointed out that fertilisers for potatoes were 250% dearer this year.

IFA national potato chair Seán Ryan.

He said products such as 9-10-21, which was bought for €450-500/t in 2021, is costing €1,160 to €1,200/t this spring.

The IFA representative maintained that electricity costs for cold stores had increased four-fold over the past 12 months, while diesel charges have doubled.

“We are calling for the increased input costs to be recognised and paid for by the retailers and packers,” Ryan said.

“Potatoes are the only fresh commodity which declined in price at retail level,” he added.

“Average prices have dropped 5% compared to last year.”

It is a high-risk situation growers are facing into

With pre-pack prices for main-crop potatoes holding at €380/t to €400/t, Ryan said many growers were questioning the risk associated with planting this spring.

Given current costs, Shay Phelan of Teagasc said growers will need a saleable yield of 12t/ac to 13t/ac just to cover their costs.

“It is a high-risk situation growers are facing into because the higher input costs are already built in. Growers will need decent yields,” Phelan maintained.

“Growers are at a critical juncture in terms of the decisions to be made for the 2022 crop, and I can see some walking away if there isn’t a move on potato prices,” Ryan claimed.