Report: Costs of Production for potato processing potatoes in North West Europe

This Potato Council report provides an overview and comparison of the costs of production of potatoes for processing in the United Kingdom, Belgium, the Netherlands, France and Germany.

The overall assessment of the 2010 cost analysis is to reaf?rm the view that there are some important differences between countries in NW Europe when the cost of production is evaluated on a common platform. Assessing the overall Costs of Production needs to take account for family labour, storage costs and the cost of land.

Marketable Yield is the biggest single in?uence on the cost per tonne, bearing in mind the more demanding speci?cation in GB;when compared to a whole crop speci?cation which is commonly accepted in other European countries.
 

The greatest challenge for NW European growers remains to establish clear recognition of the full cost of production, to give a sustainable return to allow potatoes to compete for land, water, ? nance with significantly reduced grower numbers.

The key points arising from the study appear to be:

• The market remains weak
• Profitability still fragile generally for potatoes, although cereals and oilseeds are enjoying strong profits
• Belgian export led growth is creating stability from an otherwise mature and declining market, but at low price levels
• Farms are still generally small/family run outside GB, but there is strong evidence of change
• Potatoes have begun to be recognised as less profitable in the enterprise mix
• There is less credit available generally, and this is making risk assessment more relevant in many businesses, and could worsen as the Eurozone crisis unfolds
• Balance sheet development stalled due to key development land drivers in mainland Europe
• Organic production developing in The Netherlands
• Green manures feature as part of nitrate management and can be assisted regionally by Government or water authorities