ARCHIVED - Cheap as chips: Spanish potato prices are forced down by imports and supermarkets

Imports from outside the EU are reportedly leading to losses for Murcia potato farmers

The potato farming sector in the Region of Murcia is reported by the COAG farmer’s union to be facing its worst crisis in a decade, with agriculturalists unable to sell their crops at pre-agreed prices and forced to offload spuds at a loss as purchasers renege on the deals originally agreed.

COAG attribute the low prices to major purchasers such as supermarket chains, who are pushing market prices down as they attempt to increase market share and forcing washing and treatment plants to buy from farmers at the lowest price possible. As a result, it is reported that although pre-planting prices were agreed with agriculturalists at an average of 42 cents per kilo sales are now being made at just 18 cents, lower than the average production cost of 22 cents per kilo.

Given the additional costs associated with leaving potatoes to rot in the fields producers are being forced to bow to the pressure of buyers, according to COAG, and at the same time EU regulations mean that costs cannot be cut by bypassing or substituting the pesticides specified as acceptable. However, the permitted import of non-EU produce which is exempt from these regulations is an aspect of the current market which the farmers find hard to stomach, and the union is requesting that the national government step in to restrict the entry into Spain of non-EU potatoes.

From a consumer point of view, meanwhile, the good news is that cheap potatoes mean an inexpensive opportunity to try your hand at the traditional Spanish omelette; why not when they're "cheap as chips" in the markets this week!