The price of potatoes has dropped to a five-year low because of over-production, it emerged yesterday at the National Potato Conference.
There were allegations that one supermarket chain had been selling potatoes as a "loss-leader" until challenged by the growers.
Mr Tom Maher, the national potato specialist with Teagasc, urged growers to reduce acreage by at least 5,000 acres to ensure an acceptable economic return.
He told the conference, which was held in Dublin, that growers were receiving a third of the price they were getting a year ago because of over-supply on the market. A 10 per cent reduction in acreage was needed.
"Potato-growers are getting less than £100 a tonne today compared to over £300 a tonne 12 months ago. The high prices in late 1998, early 1999 were due to the fact that large acreages were unharvestable because of very wet weather. However, when these crops were eventually harvested last March, prices to the grower slumped and have remained at rock-bottom ever since," said Mr Maher, who works for the agriculture and food development authority.
The price being paid to farmers was, at best, break-even, and many growers were feeding surplus potatoes to cattle. The situation was the same in Britain. The number of potato-growers has fallen to 1,100, who grew 39,000 acres of the crop last year. More than 600 growers have gone out of the business in the past five years.
Mr Maher told the conference that our potato consumption was still the highest in Europe at 140 kg a head a year, about 1 lb of potatoes a head every day. Kerr's pink, record and rooster accounted for more than 60 per cent of total production for the Irish consumer, who favours a floury potato. The conference also addressed the labour shortage. An Bord Glas, the horticulture board, estimates a shortfall of 1113 per cent for permanent full-time and part-time workers, not including seasonal and casual labour.
The board launched a guide to recruiting workers from abroad.
It said the service fee charged by agencies varied from £350 to £1,000 a worker depending on the length of the contract. The publication warned that those who bring in workers must regard them as a long-term resource which must be preserved through fair treatment and respect.
"These workers have a choice. Irish growers are competing against other European countries for labour, including growers in the Netherlands and Denmark," said the guide.
"Reputations quickly develop. If the Irish horticultural industry develops a reputation as a good place to work, this will ensure that the right people continue to come here."