The potato category collectively made a stand against slashing potato prices this week and backed this up with evidence that it was not a price-sensitive product.
The Potato Council-led conference, SMashing the Credit Crunch, saw industry players, market analysts and money experts come together on Tuesday to carve a way forward through the economic downturn.
UK potatoes have long been perceived as a good value staple and cost on average 63p a kilo. However, retailers are putting pressure on prices and the increased popularity of value lines is driving retails down further.
But TNS figures for the 52 weeks to January 25 show that the fresh potato category grew by 5.9 per cent and 2.8 per cent in value and volume terms, respectively.
Potato Council chairman and grower Allan Stevenson, pictured, said he is concerned that “real damage” is being done down the supply chain by “unnecessarily discounting” potatoes.
He said: “This is just taking profit out of the supply chain; can this be the right way to do it? Potatoes are not a price-sensitive product, so it should not be necessary to discount product. I invite retailers to see if it is possible to soften their aggressive stance on potato pricing.”
Ed Garner, director of research at TNS, added: “If you cut the price of potatoes, all you are doing is giving your money away because, despite swingeing price increases, sales volumes have still gone up.”
A number of industry members spoke up from the floor to concur with these views. Henry Brown, commercial director at Solanum, said: “This practice drives investment from growing and that is what will keep the category going in the future.”
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