Proactive Investors - Adverse weather conditions are causing a surge in potato prices among British retailers.
Assosia data analysed by The Grocer showed that, between the weeks commencing 8 January 8 and 12 February, prices for Maris Piper potatoes rose by more than 10% in Lidl, Waitrose, Aldi, Tesco (LON:TSCO), and Sainsbury 's (LON:SBRY).
The largest monthly increase was observed at Sainsbury's, where the price for a two-kilogram bag of Maris Pipers surged by 22.2%, moving from £1.35 to £1.65.#
Tesco also experienced significant price growth, with a 21.3% increase for a similar package during the same timeframe.
Wet weather was the leading cause for the disruption, but NFU potato and policy chair Tim Rooke said problems began in the summer of 2022 when a drought caused supply issues.
Speaking on the fall in the number of potatoes in storage, he said: “The crop we are using at the moment potentially has to go maybe two months longer.
“I think there could potentially be a shortage by the end of the season."
Waterlogged fields caused a spike in spud prices last Christmas, adding to Yule-time stress for Britain's potato lovers.
This caused a seasonal record high for potato futures prices.
Potato futures have only gone up since, surging more than 25% since the start of the year, per contract for difference (CFD) prices on the European Energy Exchange (EEX).
These contracts allow producers, large consumers, and speculators to offset or assume the risk of a price change of holding a specific quantity of potatoes over time.
Though not an exact reflection of wholesale prices, they provide a good indicator of what the market expects prices to be.
According to projections supplied by Trading Economics, wholesale potato prices could hit €41.58 per 100 kilograms by the end of the current quarter before hitting €54.45 in 12 months.
This is slightly behind the all-time high of €55 in June 2023.