Rising storage costs are adding to financial pressures facing potato growers in Northern Ireland
Northern Ireland potato growers have been warned against accepting prices that fail to cover production costs, as rising expenses and uncertainty over European harvests put fresh pressure on farm businesses.
The Ulster Farmers' Union (UFU) is urging producers to stand firm when negotiating prices, warning that growers cannot continue absorbing financial risks while other parts of the food supply chain protect their margins.
UFU deputy president Clement Lynch said farmers must understand their costs and the value of their crops, rather than feel pressured into accepting unsustainable returns.
The warning comes weeks after the collapse of Glens of Antrim Potatoes in September, when the long-established processor and packer entered administration amid rising costs, leaving most of its 95 employees out of work.
The business, which had operated for more than 50 years, supplied supermarkets and grocery retailers across Ireland.
Administrators cited rising wages, fuel, energy and machinery costs among the pressures affecting its financial position, highlighting wider challenges within Northern Ireland's potato supply chain.
In its latest statement, issued on Tuesday (20 October), the UFU stressed that growers must remain informed about market conditions and recognise the investment required to produce a quality crop.
Lynch said: "Growers need to be strong sellers, not simply price takers."
Potato production involves substantial upfront spending on seed, fertiliser, fuel, machinery, labour and storage, often months before farmers receive payment.
The union warned that these pressures, combined with volatile markets, make securing sustainable returns essential for the industry's future.
The concerns come as drought and extreme heat disrupt potato production across major European growing regions.
Analysis published by the Energy and Climate Intelligence Unit (ECIU) in September estimated that adverse weather could reduce potato harvests in Germany, France, Belgium and the Netherlands by approximately 3.1 million tonnes compared with five-year averages.
Including expected losses in Great Britain, the estimated shortfall exceeded 3.5 million tonnes.
The analysis also suggested British growers could face production losses worth between £80 million and £169 million because of reduced yields.
Tighter supplies have influenced prices in some markets.
The ECIU reported in September that British processors were paying more than £300 per tonne to secure potatoes, compared with £180 in February.
However, those figures reflect reported processing market prices at the time, rather than current farmgate returns for Northern Ireland growers.
Higher market prices do not necessarily guarantee better profits, particularly where farmers have suffered reduced yields, face quality-related deductions or have crops committed under existing contracts.
The Irish Farmers' Association's latest potato market report, published on 14 October, also highlighted highly variable yields and growing concern about production costs.
It reported strengthening consumer demand as colder weather arrived, while dry soils and tuber damage were slowing harvesting in parts of Belgium and northern France.
Although those findings primarily reflect markets outside Northern Ireland, they illustrate the contrasting pressures affecting potato producers and buyers.
For growers deciding whether to sell immediately or hold crops in storage, potential price improvements must also be weighed against electricity, handling and storage costs, alongside the risk of deterioration.
The UFU has not specified a minimum sustainable farmgate price or published a cost-per-tonne benchmark in its latest warning, with individual returns varying according to yields, crop quality, contracts and production costs.
Nevertheless, the union maintains that growers must take a commercially informed approach to selling rather than accept returns that undermine the viability of their businesses.
With producers assessing the 2026 harvest and preparing future planting decisions, the warning places renewed attention on whether market returns are sufficient to support continued investment in Northern Ireland's potato industry.