McCain Foods collaborates with approximately 250 potato farmers across the UK, serving as the largest buyer of the nation's potato crop. A survey of 100 farmers revealed that 57 have experienced yield impacts due to climate change. Additionally, 40% reported increased operational costs linked to irrigation and drainage requirements.
The period from October 2022 to March 2024 marked the wettest 18 months on record for the UK, surpassing the previous record from August 2019 to January 2021. The survey highlighted rising energy and fertilizer costs as major financial challenges, partly due to the Russia-Ukraine conflict.
In response, 97% of McCain's potato farmers are considering diversifying operations for additional profit streams, with 46% planning to adopt renewable energy solutions. McCain announced plans to adjust the price per tonne paid for potatoes, reflecting yield variation risks. A 20% advance payment on contract value will also be introduced to ease cash flow challenges.
Part of the £30 million investment will support farmers with CAPEX costs for new equipment, such as efficient irrigation systems and on-farm water storage. McCain is also offering practical support for farmers to enhance planning for extreme weather conditions.
Grower Sam Daw stated that the package will "rejuvenate confidence in the sector, reshape our cash flow, and allow for investment and growth planning." James Young, McCain Foods GB's VP for agriculture, emphasized the challenges faced by British potato farmers, noting McCain's commitment to supporting growers and ensuring the long-term sustainability of British agriculture.
Source: edie