CRUNCH TIME FOR THE POTATO INDUSTRY

Australia’s nation-wide potato shortage looks to continue throughout 2023, leading to a lack of potato products on supermarket shelves.

words: Matilda Meikle

Due to the ongoing effects of flooding and fluctuating weather conditions seen throughout 2022, potato farmers have been unable to keep up with demand for this popular produce.

The call for frozen potato products, and discussions with major brands, has led to sourcing problems for restaurants and supermarkets alike. So far, the cost of potatoes has increased by around 25 per cent, and we’re yet to see what will happen over the coming months.

So, what exactly is the issue? And how are farmers being affected?

The Popular Potato Industry

From chips, to crisps, to mash, Australia is a country in love with the humble potato. As such, the industry is now worth around $750 million. Potatoes represent the largest group of vegetables grown in Australia by volume, coming in at over 1 million tonnes every year. This accounts for around 20 per cent of all horticulture production in Australia.

Potato crop is grown on around 28,000 hectares of land. However, this industry can be split into several sectors: seed potato production, ware potato production (used for the fresh market), and processed potato production (used for frozen produce, chips and crisps). Each sector has its own practices and crop management, but all are responsible for delivering delicious potatoes across the country.

The industry is divided into these subcategories due to the different types of potatoes required for each sector. As such, the shortage is mostly affecting spuds needed for processed production. Lovers of chips and frozen products may struggle to get their hands on their favourite snacks in the year to come.

This shortage is largely due to the floods of 2022. Potatoes are usually planted at the end of October, but intense weather conditions meant many farmers were prevented from planting stock until December. As such, potato harvests in regions like Ballarat were reduced by one-third after potato plants were damaged –and it looks like things aren’t getting much better. Farmers say the ground has been too wet to place machines in paddocks to sow the potatoes, leading to ruined harvests.

To preserve the potato stock still available, major brands like Coles have introduced purchase limits on freezer potatoes, while cafes and restaurants are being forced to get creative with their menu offerings.

Other Important Factors

While weather concerns are the major factor in Australia’s potato crisis, there are also other important contributing elements. For example, farmers claim they aren’t being paid enough for their produce, calling on big brands like McCain Foods for a 78 per cent price increase to remedy this.

Last season, McCain paid their growers an average of 33 cents per kilo of spuds, yet it costs farmers around 51 cents to produce a kilo of potatoes. With harvest already down 20 per cent, and factors such as pest control and labour costs increasing expenses for farmers, the lack of pay is making potato production seem less and less viable.

Simplot Australia faced similar backlash last year when they refused to increase its pay rates after Tasmanian farmers asked for better wages. While farmers estimated it cost around $20,000 a hectare to produce their potatoes, Simplot was unwilling to compensate for these costs during negotiations.

Overall, it looks like the potato shortage will continue into 2023, with future impacts remaining to be seen. Australians should be prepared to see less and less of their favourite potato products on the shelves, while farmers continue to recover after a hard 2022 season.