Brexit, if nothing else, has got fresh produce businesses thinking more internationally about potential new markets, and few sectors seem better placed to take advantage of that trend than seed potatoes.
Already one of the sectors most advanced when it comes to shipping overseas, ever-increasing government support for exports backed by strong industry initiatives in that area are helping position producers at the forefront of the changing trading environment.
AHDB is leading the charge on behalf of the industry, and has set up numerous meetings in a bid to improve British exporters’ prospects overseas. In July, for example, it organised and funded a meeting between government representatives from Scotland and Brazil to simplify the import classification requirements for seed potatoes. The agreement could see a significant increase in the tonnage of British seed exported to Brazil – a country that produces around 3.6 million tonnes of potatoes a year but has productivity yields only two-thirds of that achieved by UK growers. The two sides are meeting again in January to finalise proposals to remove the requirement for disease testing on British seed potatoes entering the South American country.
In a further development, SASA (Science & Advice for Scottish Agriculture) has conducted seed trials in Kenya, with four free varieties – Atlantic, Cara, Hermes and Russet Burbank – and six commercial varieties provided by the James Hutton Institute selected as they are expected to thrive in hot, dry conditions. Most Kenyan farmers use poor-quality home-saved seed, which only yield as little as ten tonnes of potatoes per hectare, with the British seed both healthier and yielding four to five times as much.
Individual companies are also accelerating their movements in the international arena. Greenvale supplies Egypt, Israel, Morocco, Jordan and Cyprus, and is looking to recommence exports to Saudi Arabia following a gap of several years. The company’s head of seed, Niall Arbuckle, says: “The export potential for seed potatoes is generally good, but UK exporters will need new varieties which are suited to export countries to challenge the Dutch and German breeders. This will require a lot of investment going forward.” To that end, Greenvale has a new variety called Sorrento, which is regarded as very blight resistant and high yielding, and is promising for the Egyptian market.
A spokesman for Albert Bartlett says export potential is currently good for Scottish seed crops, particularly given the problems in other areas of Europe, adding that AHDB is doing a good job of progressing the sector’s agenda given its finite resources. The company already supplies Israel and France and is examining other markets.
Despite the air of positivity, there is also a healthy dose of caution in a nod to the not insubstantial challenges brought on by the politico-economic climate and other issues. David Nelson, field director at Branston, which doesn’t export significant volumes of seed potatoes, warns that there are concerns that international trading arrangements could require extensive negotiations with some North African countries and threaten current levels of trade.
There is further uncertainty in the longer term over import tariffs in non-EU countries, and the establishment of trade deals will be crucial for the overall wellbeing of the seed industry going forward.
Nelson adds: “While potentially making it easier to export, the weakness of the pound means imported seed is about 20 per cent more expensive than last year. This will encourage more UK multiplication.”
Overall, there is a sense that this is a time of opportunity for the seed potato sector. As Rob Burns, head of crops export market development at AHDB, sums it up: “This is the right time for the British seed industry to look at new export opportunities. Currency movements in recent months have made the UK a more attractive proposal to many. While traditionally over 75 per cent of British seed exports have serviced four established markets, we think in the medium to long term British exporters could be operating with a far broader portfolio of international customers, both outside and inside the European Union. At AHDB we will be monitoring the landscape and working in partnership with government to remove trade barriers as opportunities arise.”
Mixed production season for seed potatoes
It’s not all straightforward from a production point of view this year. Albert Bartlett describes the latest season as “mixed”, with a favourable spring giving way to a very poor summer and autumn. “In general, crop health is better this year than last year, although tuber numbers are low on many seed potato varieties,” a spokesman says.
Greenvale’s Niall Arbuckle points out there appears to be more potatoes in production across the EU, meaning lower prices. Quality is variable, but it has “been a good growing season in Scotland and the UK and we are looking forward to a more settled spell to finish the crop and allow for an easy harvest.”
David Nelson of Branston – which has expanded production of its Lanorma baking variety by 20 per cent – says that dry conditions and lower tuber numbers in many seed growing areas should result in yields being similar or behind those of 2016. “There appears to be relatively low levels of blackleg and little sign of powdery scab so far in seed crops,” he adds. “The early burn-down may expose crops to black scurf infection if harvesting is delayed beyond three to four weeks.”
A whole new world
Between April 2017 and March 2018 the AHDB’s crop exports team is visiting or hosting numerous international missions. They include:
• Mission to Israel(February 2017) to discuss increased GB market share
• Fact finding visit to Oman (June 2017) to investigate the potential of this market for exports
• Inward mission from Brazil (June 2017) to agree equivalence between Brazilian and GB seed grades and discuss the removal of the requirement to test for quarantine organisms
• Inward mission from India(August 2017) to meet the new head of Central Potato Research Institute Shimla and the head of the Indian Council of Agricultural Research and discuss access to the Indian market for British seed exporters
• Inward mission from Russia (September 2017) to discuss increasing access to the huge Russian market for both seed and fresh potato exports
• Inward mission from Egypt(October 2017) to meet the new head of Central Administration for Plant Quarantine and to showcase British industry and supporting science. Egypt is seen as a vital market for British exporters as it imports around 60 per cent of the total export tonnage from this country
• Fact finding visit to Kuwait and Qatar(October 2017) to understand supply chains and market dynamics in these two countries. Middle East and the Gulf states are particularly interesting as potential new markets as Saudi Arabia, their previous supplier of seed potatoes, has banned potato production as part of water-saving measures
• Technical visit to Kenya(November 2017) to observe AHDB-funded seed trials and discuss the performance of British varieties in Kenya and develop closer links with the Kenyan Potato Council and seed importers
• Outward mission to Brazil (January 2018) to finalise discussions on removing the requirement for disease testing on British seed entering Brazil and also to better understand the supply chain and potato industry
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