Potato Review

CROP STRATEGIES www.potatoreview.com POTATO REVIEW JANUARY/FEBRUARY 2023 17 K EEPING your feet on the oor instead of ‘gazing at the moon’ thinking of recent increases in retail potato prices is the stark warning for growers this year from Agronomist Andrew Goodinson. e substantial jump in the price of inputs and inputs means growers need to think carefully how they manage the risks they are facing, how to best manage their cash ow – and the all-important pro t margin, Andrew stresses. “With the change in the cost to pro t ratio, cash ow requirements may have changed, so growers need to know their gross margins and plan for the future, using a budget to determine how much will be made from the crop,” he said. Looking at the current prices for crisping and processing sectors, Andrew suggests growers opt to move some area away from crisping to grow a processing variety instead because input costs are the same but yields are higher. “For example, if a crisping crop does 38 to 40 tonnes a hectare on average, processing does 45 to 50 tonnes a hectare for the same cost.” In addition, the seed rate for crisping variety is higher and the seed cost is also more expensive. “As the cost of living crisis tightens, it is a good idea to understand exactly what both xed and variable costs are for each part of your business, and the areas which are the most pro table.” In addition to costs going up, there are increasing pressures from retailers wanting not only to keep prices down but to reduce the carbon footprint. Some have signed up to becoming carbon neutral over the next 15 years or so. “In the future, supermarkets are likely to be seeking more transparency and justi cation of input use, so the better information we have, the more visibility there will be for the supply chain,” said Andrew. “Moreover, the quality bar is being raised all the time.” Land rent can be expensive, and he points out that in some areas, such as Herefordshire, there is pressure on demand for land for growing, pushing up prices. In addition, if elds are rented, there can be a lot of costs before any variable costs are applied. For example, in Herefordshire, while some rents can be £750 /ha others are £2000/ha, so tough decisions may need to be made on whether to grow potatoes at all. Nonetheless, well thought-out plans and strategies can help prepare for di erent scenarios that growers are likely to face in 2023. “It is important to regularly review your practices and don’t just follow the same Andrew Goodinson discusses the most important areas to assess when deciding on potato crop strategies for 2023. ‘Plan for a profitable potato crop’ system every year,” he said. “Assessing what will make the most money not just in one season but over the whole rotation can help you decide on your focus and establish your rotation for the best overall margins.” ➜ ANDREW GOODINSON Based in Herefordshire, Andrew is an Agronomist and Potato Specialist at Hutchinsons, for whom he has been working for the past 16 years. He looks after nearly 8,000 ha of farmland, ranging from Cirencester, to the Welsh borders, south Shropshire and Worcester. Well-grown seed crop grown on Welsh borders, which shows how a crop should look when set up the right way.