Australian Potato Industry Faces Tough Year as Heavy Rains Continue to Impede Production

A nationwide shortage has left the Australian potato industry in disarray. Consistent rains throughout most of 2022 significantly lessened potato production. The prolonged wet weather impeded the harvesting of early crops, causing significant delays in planting in Riverina, New South Wales, and the Central Highlands states of Victoria and Tasmania, resulting in a significantly lower number of spuds and smaller sizes. In 2022, New South Wales experienced 860.24 mm of rainfall, 54.7% above average and the second-wettest year since 1950, based on reports from the Australian Bureau of Meteorology. Victoria witnessed 872.70 mm, the fifth-wettest year on record, while 774.27 mm fell in Queensland in 2022, 24.4% above average and the state's highest rainfall since 2011.

According to Alan Chua, an Agricultural Trade Specialist in Australia, potato shortages began in August 2022. "South Australian potato growers have been witnessing shortages since August in the domestic market due to flooding and heavy rainfall on the east coast of Australia. Harvest of Australian potatoes started in November before the festive season, and growers are keen to move stocks quickly before more severe weather conditions start. Priority will be given to retail programs for premium table potatoes, after which export markets will begin," he reported.

Source: Source: Australian Bureau of Statistics, Potatoes Australia

The shortages also affected frozen potatoes and potato-based snacks such as chips, causing prices to soar. A 165g bag of Red Rock Deli chips in leading supermarkets rose to AUD 7.60 from AUD 4.29 in 2018, a 77% increase over the past four years. The average price of fresh potatoes rose to AUD 3.75 per kilogram, 25% more than the previous year and 72% more than the global average. Australian potatoes are now the tenth most expensive in the world.

In response to the shortage, leading Australian supermarkets introduced a temporary purchase limit before the festive season for frozen potato products. The purchase limit applies to the entire frozen potato chip category, including french fries, potato wedges, and potato bites, restricting consumers to two products each. The limit will be removed when supply reaches consistent levels. In Strathalbyn, southeast of Adelaide, potato chips have been removed from most restaurant menus, while other outlets utilise sweet potatoes as an alternative. Pub operators across the country have also been severely affected by the nationwide potato shortage, with certain larger pub groups anticipating revenue losses of around AUD 500,000.

Climate change continues to contribute to the severity and frequency of extreme weather events, leading industry experts to anticipate an increased number of failed potato crops in the next three years.