UK potato levy increase is fully justified

At first glance, the planned 9% increase in the potato levy over the next three years seems hard to justify.

For a start, it is coming in a year in which UK potato prices have been under considerable pressure. The last thing any grower needs is another cost increase.

So why the levy rate increase?

For a start, there is a degree of "catch-up"going on, as there has been no change in the levy rate for potato growers for eight years. Had the levy kept pace with inflation, it would stand at almost £50/ha instead of the current £39/ha.

Secondly, it is no secret that the Potato Council has been living beyond its means. Figures in its corporate plan reveal that, last year, total expenditure came to £6.3m compared with an income of £6.1m. And this year it is budgeted to spend £6.7m from an income of £6m, cutting further into reserves.

Thirdly, while the £400,000 cost savings now coming through will help to contain this financial deficit, the Potato Council wants to increase expenditure in certain key areas.

In particular, it is planning to boost its marketing spend, with a range of activities designed to attract new, younger customers to potatoes.