TWO years of over production are causing "great pain" for potato growers, according to Fiona Fell, chairman of the Potato Council.

Twelve months ago the Council's "Market Dynamics Report" highlighted that the 2013 year-on-year retail volume sales had fallen eight per cent – 133,000 tonnes – but growers planted more than 121,000 ha in Great Britain, a figure very similar to the year before.

Mrs Fell said: "A favourable growing season in 2014 resulted in a 5.7m tonne crop, which was 3 per cent up on the previous season. By November the estimated GB stock position was the equivalent to two boxes per hectare (200,000 tonnes) higher than a year before."

But she said Great Britain could no longer utilise that level of production. "The industry has been successful in reducing supply chain waste and coupled with a drop in fresh potato consumption this results in a new base level for production, well below what we have been used to.

"Our high stocks have been placed under further pressure by a North-West European crop of 28m tonnes, which is 4m above the five year average. The result is extremely uncomfortable and very challenging for our grower base."

Ex-farm free-buy prices, both at home and abroad, have been weak reflecting the supply situation. The GB weekly free-buy price fell to a new season low in the week ending January 16, hitting £77.43/t compared to £152.09/t at the same point last season. This is the lowest it has reached since Autumn 2009, and the lowest for the time of year since the 2002/03 season.

Volatility is set to continue across agriculture and contracts are an important means of managing risk.

Mrs Fell said it was paramount that growers work to build strong relationships with their buyers, based on trust and transparency.

"Although there’s been some progress with shorter chains and longer terms, contracts only work when terms are honoured by both parties," she said,

“We encourage growers who have not had contracts honoured this season to contact their farming union for advice and legal assistance with handling disputes. “

Heading into the 2015/16 season Mrs Fell said: "Grow what you are being asked to grow by the market. Grow what you know you can sell.”

Changes in consumption have affected all developed nations. France, Germany and Spain have all reported declines in fresh consumption this year.

GB retail consumption volumes have begun to stabilise, with total fresh retail volumes rising two per cent (year-on-year comparison of latest quarter to January 4) but are still down two per cent for the 52 weeks compared with the previous year.

"Arresting fresh decline requires creative and concerted efforts from all parts of the supply chain from plant breeders, through primary producers and their supply chains and associated retailers," said Mrs Fell.

The Council's latest collaboration is with Olympic gymnast Beth Tweddle MBE who is supporting its "Cook Your Own Potatoes" project, which aims to communicate the health benefits of potatoes to children and encourage them to cook healthy balanced meals featuring potatoes which play a key part of her intense training regime.”