Potato Prices Could Also Rise

Finance
Potato prices could also rise

INFLATION: Difficult for producers to cope with the increase in costs, which is added to a drop in yield due to the drought

In France, consumers are faced with several price increases, whether for energy bills or everyday products. One of them is no exception to the rule: the potato. The price of this vegetable could soon increase. In question: the drought, which impacts the yield, but also the increase in the costs for the producers, reports RMC .

According to professionals, purchasing costs for supermarkets could increase by 30%. A way to offset the cost of production.

A better distribution to avoid the increase

A producer explained on the radio that his expenses have increased by 25%, including fuel oil, agricultural machinery and labour. He, who produces 2,000 tonnes of potatoes each season, also deplores a 20% drop in his yield, due to the drought. He, therefore, has no choice but to raise his prices. “We went from five euros per 10 kg bag to six euros,” he explained to our colleagues. Added to this is the increase in the price of energy and in particular electricity, while professionals have to keep the tubers cool to prevent them from sprouting early. 

But it is not yet certain that this increase will affect consumers. The president of the National Union of Potato Producers explains: “When you buy a potato in a supermarket, the producer receives only 20% of its value. Large distribution captures 50%. If supermarkets played the game of distribution better, the farmer could benefit from this increase in purchases without necessarily passing on to the consumer”. The answer soon be on the receipts …

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