NORTHERN IRELAND FORUM

FOR

POLITICAL DIALOGUE

_____________________

REVIEW OF THE CURRENT

STATE OF THE

NORTHERN IRELAND

POTATO INDUSTRY

by

STANDING COMMITTEE 'D'

(AGRICULTURE AND FISHERIES ISSUES)

7 March 1997

CR7

REVIEW OF THE CURRENT

STATE OF THE

NORTHERN IRELAND

POTATO INDUSTRY

"Some of us are maybe old enough to remember

that we had a flax industry in the province. I just

mention it as an example. We are afraid that if we

are not careful and if action is not taken fairly

quickly that the seed potato industry could follow

the flax industry."

Mr D L Armstrong

Seed Potato Promotions Ltd

Thursday 9 January 1997

REVIEW OF THE CURRENT

STATE OF THE

NORTHERN IRELAND

POTATO INDUSTRY

PAGE

1. INTRODUCTION 1

2. BACKGROUND 3

3. POINTS ARISING FROM EVIDENCE 6

4. REVIEW OF EVIDENCE 18

5. RECOMMENDATIONS 22

APPENDIX A - MEMBERSHIP OF COMMITTEE

APPENDIX B - MINUTES OF PROCEEDINGS

APPENDIX C - WRITTEN EVIDENCE

- Department of Agriculture for Northern Ireland

- Ulster Farmers' Union

- Seed Potato Promotions Ltd

APPENDIX D - ORAL EVIDENCE

- Wednesday 4 December 1996

- Ulster Farmers' Union

- Thursday 9 January 1997

- Department of Agriculture for Northern Ireland

- Seed Potato Promotions Ltd

1

REVIEW OF THE CURRENT

STATE OF THE

NORTHERN IRELAND POTATO INDUSTRY

1. INTRODUCTION

1.1 In the course of its Review of the crisis in the Beef Industry, and as a result

of representations made to members about the state of the ware potato

sector, the Committee decided to conduct this review of the state of the

Potato Industry.

1.2 Prior to embarking on this exercise, the Committee examined its Terms of

Reference, viz "To examine the problems being faced by farmers and

fishermen in Northern Ireland and report to the Forum", and was satisfied

that the topic was intra vires.

1.3 On 7 November 1996, the Committee decided to seek evidence from

interested parties, and on 4 December 1996 representatives of the Ulster

Farmers' Union visited the Forum and gave evidence to the Committee,

evidence which highlighted a deeper decline not only in the ware potato

sector but also in the seed potato sector. Evidence sessions were held on 9

January 1997 at which officials of the Department of Agriculture for

Northern Ireland, and representatives of Seed Potato Promotions Ltd, were

questioned by the Committee. Minutes of Evidence of these discussions are

attached at Appendix D. The Northern Ireland Agriculture Producers'

2

Association were also invited to come and give evidence to the Committee,

but because of business and other pressures were unable to do so.

1.4 In addition, the Committee visited Enniskillen, Banbridge, Coleraine,

Dungannon, Omagh, Newtownards and Ballymena in late January/early

February and held evening meetings with local farmers during which many

issues were discussed, including potatoes. In the course of visits to farms

in the Ards Peninsula on 4 February 1997, the Committee visited the holding

of Mr J R McKee a potato and vegetable grower and discussed the topic

with him on site.

1.5 As a result of this evidence-taking exercise, further information was sought

from the Department of Agriculture for Northern Ireland, and its additional

responses are contained in Appendix C, along with other written evidence.

1.6 The Committee wishes to thank all those who contributed, by giving oral

evidence, by submitting written evidence or by discussing the issue with the

Committee in the course of its tour around the Province.

3

2. BACKGROUND

2.1 Evidence provided by the Ulster Farmers' Union and the Department of

Agriculture for Northern Ireland proves that there are clearly obvious

indications of decline in what has been, and still is, regarded as a very

important industry in Northern Ireland.

2.2 This decline can be seen in the following comparison:

%

1984 1995 Decline

Total output of Potatoes 265,000 tonnes 195,000 tonnes 26

Seed Potato output 72,800 tonnes 24,900 tonnes 66

Ware Potato output 177,500 tonnes 170,600 tonnes 4

Area of Potato Production 13,700 hectares 8,700 hectares 36

Potato Producers 5,725 1,700 70

2.3 Other statistics of interest are as follows:

1984 1995

Total Value of Potato Crop in NI £22m £34m

" " " Apple Crop in NI £ 2.8m £ 6m

" " " Barley/Wheat in NI £11.8m £19m

" " " Mushroom Crop in NI £ 6.8m £30m

Export Trade of Potatoes to Mediterranean - £ 9m

2.4 It should be noted that of the 1,700 potato producers currently operating in

Northern Ireland, some 400 grow potatoes as their main enterprise. In

addition, there are a considerable number of small-scale enterprises -

4

approximately 74% of potato growers produced 24% of the crop in 1995.

In 1995, these producers were supported by 180 Potato Merchants and 50

Pre-Packers.

2.5 The decline in output of potatoes (some 36%) has been continual over the

period since 1984 with a more pronounced reduction in the years following

a low price. Yields have varied over the period without any definite

underlying trend, however it is clear that yields in Northern Ireland are

generally lower than those in the rest of the United Kingdom, eg a

marketable yield of 31.6 tonnes per hectare of ware and 25.4 tonnes per

hectare for seed in 1996 compares unfavourably with 46.8 tonnes of ware

potatoes per hectare in Great Britain and 35 tonnes of seed per hectare in

Scotland. This is caused by a number of factors, including a shorter

growing season in Northern Ireland, higher rainfall in Northern Ireland

which leads to later planting and more difficult harvesting conditions,

restricted area of ideal soil types, preferred planting of traditional varieties of

potato which are less high yielding, and the field structure and topography

of the Northern Ireland countryside.

2.6 Consumption of potatoes has also declined by some 15% over the past

5 years. The United Kingdom National Food Survey indicates that per

capita consumption of potatoes has declined from approximately 36 ounces

per person per week in 1988 to just under 31 ounces in 1993, indicative of

changing attitudes to food.

2.7 Services and support to the Potato Sector are provided by the Department

of Agriculture for Northern Ireland through its Science Service and

5

Agri-Food Development Service. The Committee was advised that these

Services consult regularly with the potato industry to ensure a co-ordinated

approach and effective use of resources.

2.8 In recent years the development and prospects of the potato industry have

improved dramatically in the Republic of Ireland and in other Member States

of the European Union, mainly because of increased investment in storage,

grading and packing facilities which has been approached in a co-ordinated

and structured manner. In Northern Ireland, only limited investment has

taken place.

6

3. POINTS ARISING FROM EVIDENCE

3.1 Representatives of the Ulster Farmers' Union visited the Forum on

Wednesday 4 December 1996 and discussed the situation in the potato

industry with the Committee. On 9 January 1997 officials of the

Department of Agriculture for Northern Ireland (DANI) and representatives

of Seed Potato Promotions Ltd also discussed their view of the industry

with Committee members.

3.2 In the course of the evidence sessions, a number of areas were examined

and these are covered in the following paragraphs.

GRANT AID FOR STORAGE AND MARKETING

3.3 It was explained by the Ulster Farmers' Union that the Republic of Ireland

has become a major player in the potato markets because substantial grant

aid has been made available to the Republic's industry - the evidence for this

rests in the large number of modern potato stores already constructed or

presently being built.

3.4 Markets are being lost to Northern Ireland growers because of a distinct

lack of storage facilities, and where stores exist, they are such that

guarantees of quality cannot be given. The Ulster Farmers' Union stress the

need to reassess the access potato farmers have had to grant aid. It is the

view of the Union, that potato farmers should be encouraged to make

professional applications on a co-operative basis for on-farm stores. The

Union explained that Marketing and Processing Grants and the Marketing

7

Development Scheme are available to farmers - but that growers are put off

by the perceived arduous administrative requirements which make these

grants very difficult to access.

3.5 Officials indicated that Grant Aid is available for a broad range of

investments in the potato sector. At producer level, there is available a farm

capital grants scheme, however this scheme is closed because it is

over-subscribed.

3.6 DANI officials explained that there are two further schemes, the market

development scheme which is open to groups of farmers or processors in

association with farmers and which provides grant up to £150,000 for

marketing initiative projects. The other scheme is the processing and

marketing grant scheme which relates to capital grants. This scheme is

open to farmers, but only if they are trading - ie they need to be doing more

than marketing their own produce. The European Union fund 35% with a

national government top-up of 5% making a grant minimum of 40% and the

minimum capital expenditure under the scheme is £70,000.

3.7 DANI officials advised the Committee that access to the processing and

marketing grant was available across the whole of the food industry. The

resources available therefore had to be spread across all food sectors with

potatoes attracting a relatively small contribution, however assurances were

given that the Department is keen to support the potato sector where

possible, but the availability of resources being a key issue.

8

3.8 In the course of its examination of the state of the potato industry, the

Committee became aware of the lack of grant-aid available to potato

growers in Northern Ireland - indeed there was evidence of growers and

producers succeeding without any help whatsoever from DANI.

3.9 STORAGE FACILITIES

It was recognised by Departmental officials that little investment in storage

has taken place in Northern Ireland. However it was indicated that "at the

present time there is considerable movement on that front and a much

greater realisation of the need for improved facilities".

3.10 Seed Potato Promotions Ltd indicated that storage facilities for potatoes on

Northern Ireland farms are relatively poor in comparison with the rest of

Europe, and are certainly well behind the facilities which are available in the

Republic of Ireland. The reason for this anomaly is the lack of access by

Northern Ireland growers to grant aid, which is beyond the reach of the

average Northern Ireland farmer. Only co-operatives or large companies

could access the grants available for the Department of Agriculture - and

according to Seed Potato Promotions Ltd, it is not possible for the seed

potato businesses to qualify for grant.

QUALITY ASSURANCE SCHEME

3.11 The representatives of the Ulster Farmers' Union indicated that the time was

right to develop a Northern Ireland potato quality assurance scheme which

would set minimum standards and guarantee consumers a quality product.

9

Indeed it was reported that work had commenced on a feasibility study for

such a scheme and that the Department of Agriculture for Northern Ireland

was assisting with this.

3.12 DANI officials confirmed that a Potato Quality Assurance Scheme was

being progressed. It was explained that the large supermarket chains in

Northern Ireland have set their own standards and quality requirements. In

England the National Farmers' Union already has a quality assurance scheme

which is endorsed by all major supermarket claims.

PRICE REPORTING SYSTEM

3.13 The representatives of the Ulster Farmers' Union stated that the absence of

such a system made it very difficult for growers to find a benchmark from

which to value their crop.

SPECULATIVE GROWING

3.14 The representatives of the Ulster Farmers' Union indicated that a large

amount of ware potatoes is grown in Northern Ireland without contract.

Such action is believed by the Union to depress the market and therefore the

Union is encouraging growers to become involved in contract growing in an

attempt to ensure that quantity and quality is correct.

CONTRACTS

10

3.15 With regard to contract growing, it was stressed by DANI officials that

potato growers should seek to obtain a contract with a pre-packer or with

a supermarket, as this was the way the industry must go.

11

THE GREAT BRITAIN INDUSTRY DEVELOPMENT COUNCIL

3.16 Recently, this Council was established, as a successor to the Potato

Marketing Board, to focus on research and development and on the

promotion of potato varieties grown in Great Britain. The Ulster Farmers'

Union sees this body as being capable of the promotion of Great Britain

varieties to the detriment of varieties emanating from Northern Ireland.

Accordingly the Union has approached the Department of Agriculture for

Northern Ireland seeking assistance in a bid to gain Northern Ireland

membership of the new Council, although the levy on growers which will

be required could be a deterrent to the membership in the eyes of Northern

Ireland potato farmers.

EUROPEAN UNION POTATO REGIME

3.17 The Ulster Farmers' Union representatives drew attention to the absence of

agreement with the European Union on the need for a potato regime.

3.18 DANI officials indicated that the question of such a regime had been under

discussion within the European Union for some time, but no consensus

was available. It was considered that a lightweight regime may develop in

the future, but not soon.

MARKET TREND INFORMATION SYSTEM

3.19 The Ulster Farmers' Union representatives considered that a better system

of advising growers of market trends is needed. New varieties of potato

12

need to be grown in Northern Ireland and advance intelligence is needed of

the varieties to be planted and grown.

3.20 It was explained by DANI officials that the Department of Agriculture and

the Department of Economic Development had published a draft Food

Strategy Paper, a consultation paper which sought the views of the food

industry. The main issues raised in this paper were the need for

rationalisation, improved competitiveness, and partnerships across the

industry. A particular need identified in the potato industry was the

requirement for additional storage facilities.

CO-OPERATIVES

3.21 The advantage of bulking potatoes together in centralised storage facilities

was stressed by the DANI officials. It was further stressed that an

integrated industry is required where co-operation is needed to meet the

power of the big supermarket retailers.

SEED POTATOES

3.22 The Committee questioned the Ulster Farmers' Union representatives about

the state of the seed potato industry. It was explained that exports of seed

potatoes had fallen dramatically, particularly to Mediterranean countries, and

this has led to a large number of small family farms going out of business.

It was also indicated that seed potato exporting is very limited at present and

that many markets have been lost.

13

3.23 It was indicated by DANI officials that seed potato markets are heavily

dependent on third country trade (outside the European Union) - mainly in

North Africa, the Canary Islands and Malta. This trade by its nature carries

a degree of financial risk. Departmental officials indicated that the Northern

Ireland Farm Quality Assurance Scheme is seeking to encourage the use of

higher grade seed by the ware grower in Northern Ireland and to bring the

Northern Ireland seed potato industry and the Northern Ireland ware potato

industry closer together in an attempt to arrest decline, and to battle against

the large producers of seed elsewhere in the EU.

3.24 It was also explained that the Scottish seed potato industry and the Dutch

seed potato industry have become highly organised and now have a highly

efficient marketing machine - taking over English seed markets and third

country markets. This points to the need for the development of Northern

Ireland marketing skills and the need to ensure that the right product for the

right market-place is being produced.

3.25 The following comparisons indicate how the industry has declined since

1982.

1982 1995 %

Decline

Certified Seed Potatoes (hectares) 6,472 2,384 56

Shipped (tonnes) 78,604 22,373 71

It was the view of the seed industry representatives that in 1997, in terms

of plantings and certified hectarage, there could be a further reduction of

14

approximately 20%. "The current situation could only be described, as far

as we are concerned, as a crisis in terms of both movement of seed

potatoes and the prices we are obtaining." - "Confidence within the

industry, short, medium and long-term is at an all-time low." - A concerted

effort is needed by all sectors of the industry in tackling problems and

trying to salvage what remains of the seed potato industry."

3.26 The representatives of Seed Potato Promotions Ltd made a number of

points to the Committee, some of which are outlined in the following

paragraphs.

VARIETIES

3.26.1 In Northern Ireland, there is a shortage of new and improved varieties of

seed potatoes. Our competitors, particularly the Dutch but also the

French, Germans and others are forging ahead with new and improved

varieties of potatoes.

BREEDING

3.26.2 The history of the potato breeding in Northern Ireland was explained,

leading to the establishment of the Loughgall breeding programme and the

subsequent sale of the programme, or part of it to Agrolon Limited which

is involved with the Plant Breeding Institute, Cambridge (PBIC). In this

connection, the DANI Permanent Secretary has explained the background

to the private sector involvement in the potato breeding programme.

15

3.26.3 Seed Potato Promotions Ltd indicated that they had formed a consortium

of 5 Northern Ireland potato merchants and bid for the business which

was won by Agrolon/PBIC. The situation now, they explained, is that all

potato varieties bred at Loughgall go to the Agrolon/PBIC consortium who

have the marketing and growing rights.

3.26.4 Seed Potato Promotions also indicated that unless the industry can obtain

new varieties of potato which are commercially acceptable, there is little

future. It was explained that Northern Ireland has been dependent on old

varieties which have now lost commercial attractiveness. The following

table shows the decline of old established varieties.

1982 1996

(hectares) (hectares)

Arran Banner 1,700 192

King Edward 1,098 61

Desirée 979 481

Pentland Dell 480 396

Arran Consul 391 24

Kerr's Pinks 347

203

3.26.5 With regard to the possible breeding of a successful new variety at

Loughgall, it was stressed that it is entirely possible that such new varieties

could be grown in England or Scotland and that Northern Ireland would

reap no benefit whatsoever.

16

3.26.6 The Department of Agriculture for Northern Ireland came in for some

criticism for its "laissez faire" attitude to the potato industry and for its part

in missing out over the years in the development of new and improved

varieties. "Seed potato production within the province has not been one of

its priorities."

PRODUCTION COSTS

3.26.7 It was explained that production costs for potato growers are extremely

high, that labour is expensive and difficult to find and that the skilled

labour employed is seasonal. Smaller producers are therefore unable to

meet the demands of consumers. In 1996 for example, production costs

were in excess of £1,000 per acre plus overheads, a situation which is

totally uneconomic and which will lead to considerable losses for

growers.

3.26.8 MARKETING

This was not seen by Seed Potato Promotions Ltd as being a problem

area.

PLANTING OF CERTIFIED SEED

3.26.9 Seed Potato Promotions Ltd considered that there is a strong case within

Northern Ireland for insisting that only certified seed potato seed and

ware potatoes are planted in an effort to ensure the health of the crop,

17

and to facilitate the introduction of a quality assurance scheme for both

ware and seed potatoes.

18

SET ASIDE LAND

3.26.10 It was also suggested by Seed Potato Promotions Ltd that Government

should examine the possibility of permitting the growing of seed potatoes

within set aside land to help alleviate the problem of obtaining suitable

land for the growing of certified seed potato crops.

INSPECTION FEES

3.26.11 It was further suggested that the Government should consider the

foregoing of inspection fees for the next season's crop.

GRANT AID

3.26.12 The introduction of grant aid schemes with more flexibility than at

present was also requested.

REVIEW OF PLANT BREEDING

3.26.13 Seed Potato Promotions Ltd also called for the introduction without delay

of an independent review of plant breeding within Northern Ireland.

VIABILITY OF THE SEED POTATO INDUSTRY

3.26.14 In response to a question, it was indicated that in the view of Seed Potato

Promotions Ltd, the seed potato industry was at a critical stage and is

close to the point where it is no longer viable to proceed with seed potato

19

production. It was also made clear that the home market alone would not

sustain the industry and that exports were needed.

EU INPUT TO THE POTATO INDUSTRY IN THE REPUBLIC OF

IRELAND (ROI)

3.26.15 Seed Potato Promotions Ltd highlighted the significant EU input to the

potato industry of the RoI over the past five years - at farmer level, not

just at co-operative level. This support has enabled the provision of

stores and handling facilities - all of which are largely absent in Northern

Ireland, or where it exists are out of date. Further, it was reported that

three months ago a further £11m has been devoted from FEOGA to the

RoI potato industry - once again putting the Republic of Ireland at a great

advantage.

AN BORD GLAS

3.27 In the course of this examination of the potato industry, the attention of

Committee members was drawn to the marketing activities of An Bord

Glas (the Horticultural Development Board of the Republic of Ireland).

This body produces high quality, coloured informative, and punchy

information for consumers, encouraging the healthy eating of vegetables

and potatoes produced in the Republic of Ireland in an environmentally

friendly manner.

20

3.28 Such aggressive marketing is clearly at odds with the activities of our

own Department of Agriculture, and points to the need for Northern

Ireland produce to be equally aggressively marketed.

4. REVIEW OF EVIDENCE

4.1 The evidence submitted to the Committee clearly sets out the decline which

has taken place in the ware and seed potato industry in Northern Ireland - a

decline that has been presided over by the Department of Agriculture for

Northern Ireland. While the potato industry has been developed and

expanded in RoI and other Member States of the European Union,

Northern Ireland has not kept in step - eg there has been limited

investment, markets for fresh potatoes have been permitted to decline.

Indeed the Committee was told that the majority of the chip trade in

Northern Ireland now imports Maris Piper potatoes from Great Britain

rather than use local potatoes. The Ulster Farmers' Union representatives

stressed that there are few economically viable alternatives in Northern

Ireland to grass-based agriculture, and that a continuing decline in the

potato industry would not be in the best interests of Northern Ireland

agriculture or the Northern Ireland economy in general. On the evidence

available, it is the view of the Committee that DANI has permitted the

industry to reach a critical point where the viability of the industry is in

question.

4.2 The Committee recognises that Northern Ireland ware and seed producers

are committed to the production of high quality potatoes. The 1,700 potato

producers here produce a crop valued at £34m in 1995 - much larger than

a number of other crops produced in Northern Ireland (see paragraph 2.3).

21

The Committee also is conscious of the excellent plant health standards

which are maintained by the Northern Ireland potato industry which

provides crops which are disease-free. In addition the Committee was

pleased to note that the industry has been capable of ensuring that with

regard to certain types of potato it has been possible to keep costs at a low

level.

4.3 The main issue that has been brought to the attention of the Committee is

the absence of proper modern storage facilities on the farms of the

producer, and the lack of access by growers to grant aid. It is true that

capital grants are available but the technical and administrative requirements

set out by the Department are on the evidence available to the Committee,

sufficient to deter farmers. Indeed, in 1996-97 DANI had available £6.03m

from the EU (EAGGF) and £0.106m from National resources for

marketing and processing grants and some £0.3m for marketing

development. These resources were available across the DANI food

processing sector, and were not available solely to potato growers.

4.4 The Committee was disappointed to note that despite the fact that the

industry had declined to the extent outlined in paragraph 2.2 and 2.3 and

3.24 and more particularly over the past six years, the Department of

Agriculture in association with the Department of Economic Development

had only recently published a consultation document on Food Strategy.

This exercise is designed to cover the food industry at large which includes

a rather small potato sector. In addition the Department had only recently

commenced the development of the NI Farm Quality Assurance Scheme

with regard to potatoes.

22

4.5 The Committee recognises the case for the development of contractual

growing of potatoes. Indeed, in the course of its examination of the Beef

Crisis in Northern Ireland, the representative of a well-known supermarket

chain indicated that 25 potato growers had been growing potatoes for the

chain for 5 years. These growers are paid not only for their potatoes, but

they are given a bonus provided the criteria required by the chain are met.

23

4.6 The Committee was particularly concerned about the current crisis in the

Seed Potato Industry, in particular the lack of research into new varieties.

The Committee believe that this is an area in which the Department can be

of great assistance to the seed growers. The Committee is also concerned

at the level of import of both seed and ware potatoes into Northern Ireland.

This can only occur in a situation where there is a lack of information to

the growers about the varieties that are required. The Department of

Agriculture should be in a position to provide this advice - it is quite clear

that it is not fulfilling this need.

4.7 With regard to the breeding of new varieties of potato, DANI in a letter

from the Permanent Secretary, clarified the evidence given to the

Committee by Seed Potato Promotions Ltd. The Committee wished to visit

the DANI potato disease control and plant breeding installations at

Newforge and Loughgall before completing this report - however pressure

of time has dictated that this is not possible before the publication of this

report. The Committee is however extremely concerned in the 56%

decline in potato hectares planted and the 71% decline in shipped tonnes of

potatoes since 1982 - a decline that would worsen in the coming season.

4.8 The Committee is also concerned about the processing of potatoes

produced in Northern Ireland. The Committee would encourage the potato

industry to ensure that a greater proportion of processing and value adding

should be carried out in Northern Ireland.

24

4.9 The Committee noted the evidence of Seed & Potato Promotions who put

forward a number of suggestions which if implemented, would in their

view assist the recovery of the industry.

4.10 The DANI Permanent Secretary, in his letter dated 20 February 1997

explained that the Agrolon policy of contracting local growers to produce

seed supplies has had to be scaled back because not as many local growers

as anticipated were able to meet the quality standards required by Agrolon.

He went on to state that the practice of 'growing on' to produce a ware

fraction from the seed crop reduced the total seed yield to an extent which

made the production of seed uneconomical compared to that achieved by

Scottish growers (5-6 tonnes/acre in NI compared to over 10 tonnes/acre

in Scotland). The Committee notes the support given by DANI to the

industry and that the various issues raised by SPP Ltd will be taken into

account in the course of the initiatives being taken.

4.11 The Committee heard the evidence not only of the Ulster Farmers' Union

and DANI officials regarding the need for a potato regime within the EU,

but also from potato farmers across the Province in the course of evening

meetings. While the Committee recognises that in current circumstances

there is no will within the EU to set up a potato regime, and that it may be

some time before such a regime becomes feasible, there may be benefits to

Northern Ireland potato growers despite their aversion to quotas.

25

5. RECOMMENDATIONS

5.1 The evidence placed before the Committee indicated that no market

support was available to the potato industry, and while growers could seek

assistance from the marketing and processing grant and the Market

Development Scheme, access to these grants was surrounded by 'arduous

administrative procedures' which make the grants difficult to access. This

is in contrast to the substantial grant aid made available to the potato

industry in RoI which has enabled the provision of on-farm potato stores

and handling facilities. Furthermore it is understood that an additional

£11m has been provided by the EU from FEOGA resources to the RoI

potato industry. The Committee therefore recommends that DANI should

reassess the access available by the potato industry to the existing grant aid

available, to ensure that the potato industry is provided with easier access

to the funds available for the provision of suitable facilities. In addition, the

Committee now recommends that DANI should conduct an examination of

grants which could, and should be made available to assist the potato

industry. The Committee also recommends that greater priority should be

given to the potato industry in Northern Ireland by DANI.

5.2 The Committee was advised that work has commenced on the

development of a Northern Ireland quality assurance scheme for potatoes.

The existence of an established Quality Assurance Scheme would serve to

ensure that poor quality potatoes do not reach the marketplace thereby

reducing prices and turning customers towards substitute products. The

Committee therefore recommends that work on the introduction of a

26

Northern Ireland Quality Assurance Scheme for the potato industry should

be expedited by DANI and completed as a matter of urgency.

27

5.3 As potato prices vary by date, quality, and outlet, the Committee

recommends that DANI should, without delay, introduce an effective price

reporting system within Northern Ireland.

5.4 The Committee recognises that it is imperative that if the Northern Ireland

potato industry is to compete with those countries which have already

developed their potato marketing and processing sectors, it will be

necessary to grow new varieties. The Committee also recognises that to

do this, growers will require information on the varieties which should be

planted and the growing techniques required. The Committee therefore

recommends that DANI should develop and introduce a market trend

information system for potato farmers.

5.5 The Committee is aware that DANI supports the development of contract

growing of potatoes and understands the need to encourage contract

growing for a known market. The Committee recognises that there is a

need for the industry to pull together if the benefits of contract growing are

to be achieved. The Committee therefore recommends that DANI should

take the lead in encouraging the farming organisations and the wider potato

industry to co-ordinate their efforts and promote greater co-operation for

the future good of the industry.

5.6 The Committee recommends that DANI should commission as soon as

possible a survey of all potato producers, to ascertain views on the need

for the introduction of a EU potato regime which would contain market

support measures and a quota system inter alia. If it is clear, as a result of

such a survey, that there is support for the introduction of a EU potato

28

regime, then the Committee would recommend that the DANI Minister

should use every avenue available to maintain political pressure for the

implementation of a satisfactory regime.

5.7 The Committee was impressed with the aggressive marketing stance

adopted by An Bord Glas (the Horticultural Development Board of the

Republic of Ireland) and recommends that DANI should learn from its

example and devote energy and resources into marketing of Northern

Ireland produced potatoes.

5.8 While the Committee was concerned about the state of the potato industry

in general, it was particularly concerned about the decline in the seed

potato sector. Conscious of the need to protect the high disease-free

status of Northern Ireland potatoes, and aware that, as in other agriculture

sectors, quality assurance and traceability are the keys to success, the

Committee recommends that only certified potatoes should be planted.

Further, the Committee recommends that the Department should monitor

the disease-free status in Northern Ireland and should re-introduce the 1 in

5 year planting rotation system if found to be necessary.

5.9 It was pointed out to the Committee (3.26.10) that seed potato farmers had

difficulty in acquiring suitable disease-free land at a reasonable price for the

production of seed crops. The Committee therefore recommends that

DANI should actively seek a change in the rules for the issue of set-aside

land, to permit the growing of seed potatoes thereon.

29

5.10 The Committee is aware that Seed Potato Promotions Ltd recently

presented a case to the DANI Minister of the current crisis in the industry

requesting that inspection fees for certification be waived. This request

has been refused, the Minister pointing out that it remains the

Government's position that no financial provision will be made available to

support the potato market. The Committee recognises that this decision

affects all of the UK, however the problems being suffered by NI

producers are not evident in GB. As the support requested would amount

only to £66,000 approximately (2,257 hectares certified in 1996 x 29), the

Committee recommends that the DANI Minister should reconsider her

decision and should take action within Northern Ireland as a special case to

provide some relief to hard-pressed growers.

5.11 The Committee is inclined towards an independent review of plant breeding

in Northern Ireland, however is reserving judgement on this matter until

further evidence is taken from the plant breeding station at Loughgall.

30

`

APPENDIX A

~~~~~~~

MEMBERSHIP OF

STANDING COMMITTEE D

(AGRICULTURE AND FISHERIES ISSUES)

31

MEMBERSHIP OF STANDING COMMITTEE D

(AGRICULTURE AND FISHERIES ISSUES)

Ulster Unionist Party - Mr D Campbell - Chairman

Mr J Speers

Mr J Gaston

Mr J Junkin

Democratic Unionist Party - Mr D Stewart - Vice-Chairman

Mr E Poots

Mr J Shannon

Mr W Clyde

Alliance Party - Mr K McCarthy

*Mr D Ford

UK Unionist Party -

Ulster Democratic Party - Mr J White

Progressive Unionist Party - Mr D Ervine

NI Women's Coalition - *Ms R Keenan

Labour Party - *Mr J Masson

*Attend the Committee on behalf of their Party under

Rule 14(4)(a) of the Forum Rules of Procedure

32

• Review of the Current State of the Northern Ireland Potato Industry (introduced on 1997-03-07 00:00:00 - CREATE - e803964) [This document] [view current proposal at this moment]
  • None (introduced on 1997-03-07 00:00:00 - REPORT_PROPOSAL - e803965) [view current proposal at this moment]