Once it would have been down to government to help out a sector in trouble. However, with the UK's €1bn potato growing sector hit hard by extreme weather and Covid-19 it is their largest customer, McCain, that has stepped up to the plate.
It is worth noting that potato production (other than for starch) was always outside the CAP and therefore much more influenced by supply and demand.
The closure of restaurants and fast food outlets left a potato surplus of almost 200,000 tonnes in March, putting a downward pressure on prices. Prior to lockdown prices of £200 to £300 a tonne could be achieved, but they then slipped back to £100 to £150 a tonne.
The hardest hit growers have been those who sell on the spot market, such as those selling for 'fresh chipping' at food outlets.
McCain buys 15 per cent of the UK potato crop, normally on one year contracts. It is now going to offer three to five year contracts. It also offering grants for investment in harvesting capacity, including technology such as irrigation and harvesters that can handle very wet weather. 85 growers have applied for these grants.
Recent poor harvests have been among the worst in four decades after drought in 2018 and floods in 2019, McCain thinks this is down to climate change. They consider they have to act to build a sustainable supply chain.
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