The preference of large distribution chains to import old potatoes for storage, bought at low prices, has caused a 12% drop in potato consumption in Spain over the last six years. According to data from the Food Consumption Panel MAGRAMA 2014, Spain has gone from an annual domestic consumption of 1,147,000 tonnes in 2008 to 1,028,000 tonnes in 2014.
Supermarkets are selling potatoes for storage, kept for over 6 months in chambers at 4 degrees Celsius, as Spanish new potatoes (fresh and freshly harvested). These potatoes are treated with chemicals to prevent germination. "We have come across cases in which the product is sold as new potatoes, and even though the label says it is of Spanish origin, the fine print states that it is actually French. However, when it comes to cooking, things change. Old potatoes, after being stored at low temperatures for such a long time, lose water, which results in a high concentration of starch, which transforms into sugar. Consequently, a product which in principle should be healthy and low in calories is no longer so," stressed Alberto Duque, head of COAG's potato department.
Besides consumers, Spanish growers are the most damaged by this. Due to the decline in the acreage of early potatoes (-5%) and in production volumes (-10%) producers of Spanish new potatoes are not receiving profitable prices this campaign. Between September (2014) and April (2015), French old potato imports have increased by 10.6%, a situation that has pushed prices at origin down.
In recent weeks, the prices of early potatoes have plummeted in the main producing areas (Andalusia, Murcia, Valencia and Extremadura), and have remained below production costs (0.18 to 0.20 €/kg), reaching minimums as low as 0.08 €/kg. In late July, the bulk of the seasonal potato production will hit the market. The 7% reduction in the acreage in Castile-Leon, the largest producing region, should ensure prices above production costs.
The business strategies of retail chains and the speculative practices of different operators are taking a toll on growers, threatening the viability of this crop in Spain. In the last decade, the acreage has been reduced by 26%, from the 102,120 hectares of 2004 to 73,158 this season.
Given this scenario, COAG considered it a "priority to improve the structuring of the sector and move forward in the creation of a potato Inter-professional organisation, to be in charge of launching promotional campaigns and boost domestic potato consumption, raising awareness, both amongst consumers and distributors, about the benefits of local produce. It may be useful to convince consumers about the fact that culinary quality is not directly proportional to the appearance of the tubers, as well as to organise campaigns at the right time to announce the launch into the market of the local potato season."
Calls have also been made for the Ministry of Agriculture to "improve transparency and strengthen controls on the labelling, so that consumers can clearly identify the source and variety of potato they are eating. In that sense, we consider it important to include harvesting dates in the label to prevent confusion and provide consumers with more accurate information about the product they are purchasing."
Furthermore, COAG considers it necessary "to promote the introduction of valorization and differentiation strategies to increase the added value of the product and therefore the profitability of growers; it is essential to use varieties suitable to the type of soil, to make use of quality designations, or to improve presentations, as well as to ensure the implementation of market regulation mechanisms to facilitate a staged marketing of the production."
