Potato shortage in the UK chips away at McCain's bottom line

Profits have fallen by more than £10m at McCain Foods GB after Britain's market-leading frozen chip maker was hit by a severe shortage of quality potatoes in the UK as a direct result of the extreme weather conditions in the 2012 growing season. 

The UK potato harvest slumped to its lowest level for more than 30 years after the UK experienced some of the wettest weather in the last 100 years, hitting companies, such as McCain, which rely on the vegetable for their products. 

Scarborough-headquartered McCain, which employs more than 1,400 staff, operates in two distinct sectors of the UK food market, food service and retail sales and said both had been affected during the year by the potato shortage. 

The unfavourable harvest meant that the available UK potato supply had to be significantly supplemented by the purchase of expensive European potato imports for the whole of the year to 30 June 2013. 

This impacted on McCain's pre-tax profits which fell from £48.8m to £33.2m on sales which rose from £405.2m to £416.5m. 

McCain said that although selling prices were increased in the year, this was insufficient to recoup all the additional potato costs incurred.