Reino Unido: UK’s potato sector full of promise
According to Produce Investments, a leading purveyor of spuds, the potato sector will prove a "bright light" in the UK’s agriculture sector which is facing weak prices for the likes of grains and dairy.
“The 2015 crop, which is the season that just finished, was not bad, as supply and demand were more aligned and that helped keep prices at a sustainable level,” said Angus Armstrong, chief executive of Aim-listed Produce Investments.
“It was a better year for growers and I think that level of pricing will be maintained this year. The potato market is in a more positive place and is probably one of the few bright lights in the agricultural sector. If you look at cereal prices, they are not faring too well and growers struggle to make a margin, whereas the potato crop is giving farmers a sustainable return.”
Mr Armstrong made the comments as the company, which grows, harvests and sells potatoes to supermarkets across the UK, reported a 4pc rise in annual revenues to £185.1m. Pre-tax profits fell 41pc to £3.32m in the year to June, although that was down to £4.63m of exceptional costs related to the closure of a packaging site in Kent and a product recall at its Swancote Foods division. Excluding these charges, profits rose 16pc to £8.13m.
Price prospects
Potato prices have actually risen somewhat over the last year, estimated by the AHDB at an average of £166.73 a tonne as of last week, a rise of 10.7% year on year.
Free-buy potatoes are achieving £183.48 a tonne, a rise of 18.4% year on year.
Still, given the balanced market, growers should not bank on free-buy prices showing a hefty premium.
"Whilst it is still early in the season and therefore difficult to make predictions, we would expect prices for non-contracted free-buy potatoes to be in line with those that have been contracted," Mr Armstrong said.
Sources: telegraph.co.uk, agrimoney.com
Fuente: http://www.freshplaza.com/article/164278/UKs-potato-sector-full-of-promise
