Potato Price and Production

Data from AHDB Potatoes show prices have risen sharply over the last week.  For the week ending 20^th May, the GB Weekly Average Price (WAP) for Free-buy and Contract rose by £11.20 per tonne to £225.01 per tonne.  The GB Weekly Average Free-buy Price increased by £8.03 per tonne to £253.62 per tonne.  These are the highest prices since the end of 2012/13, and the second highest on record for the time of the year. 

It remains to be seen whether this season’s better prices have affected planting decisions for the coming crop.  In many cases the current high prices will have come after planting decisions were made.  But even if there was a 3% increase in planting area (the largest historical reaction to price) this would give a GB area of about 115,000 hectares (from 111,390 Ha in 2015).  This would still be the second smallest area on record and an average yield would result in a lower production than the season just gone, suggesting supplies are expected to remain tight and upward pressure on prices.