The details of the new seed rates from the British Society of Plant Breeders (BSPB) has been met with anger by the NFU, which said huge hikes are unjustified and fail to reflect the state of the potato industry.

NFU potatoes chairman Graham Nichols said angrily: 'With potato prices on the floor, it defies belief that breeders are even suggesting price increases of this size.' The BSPB rate increases, effective from December 1, include claims for £30 per hectare for varieties like Valor and Winston – up from £20 – and Saxon, which has moved from £25 to £35.

The BSPB issued a statement to say: 'In respect of potatoes, BSPB is acting on behalf of variety owners in collecting farm-saved seed remuneration from growers on eligible varieties. The society has no role in setting payment rates for each variety, which is the responsibility of individual breeders.

'BSPB is encouraged that growers recognise the need for continued investment in the development of improved crop varieties, as the basis for their future ability to compete in an ever-changing and challenging market place.' Ron Reiss, managing director of Agrico, agreed that although this issue does not directly affect Agrico – which uses older varieties than those that qualify – this is an issue that needs to be handled delicately. He said: 'I think it's essential that profit levels are worthwhile financially. But overall the royalty structure should be altered so that it is fair to both sides of the fence. I do think this needs looking at.

'As I understand it, we're looking at £25 royalties on farm saved seeds, I don't think that's exorbitant, but unfortunately farmers are used to farmers' privileges and so it needs to be worked into the system sensitively.' One company involved more directly in the situation is Cygnet PB. Managing director Douglas Harley insists the NFU has been aware of Cygnet's price rises for some years. He stated: 'It's not very helpful if the NFU puts out a statement like this. Our annual increase is from £25-£35 per hectare, which we believe is substantially below what we think the rates should be. We believe £60 is the true figure per hectare.' However, Nichols warned that if prices continued to soar, breeders may find they have priced themselves out of business. He said: 'If breeders want growers to use their new varieties they need to reflect the prices being achieved by the industry. With figures like these, the new breeds are simply being priced out of the market.' The NFU has been attempting to negotiate a rate formula with the breeders for a number of years. And Nichols urged growers to ask the BSPB how these latest figures were calculated.

He said: 'We need a system of calculating royalties that is transparent and fair. We deserve to know how these figures are reached.' The BSPB responded to the criticism, saying: 'Unlike the farm-saved seed system for combinable crops, in which payment rates for each crop species are subject to a formula agreed between the BSPB and the farming unions, no agreement has yet been reached on an equivalent system for potatoes.'

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