East Lothian Potatoes
Athelstaneford Mains, North Berwick, East Lothian EH39 5BH
Chairman: James Logan
Tel: 01620 880205 Fax: 01620 880554
Any business with a small customer base can be vulnerable to the whims of the market and in the fast moving food industry, loyalty to suppliers can be low on the list of priorities.
For the members of East Lothian Potatoes, who grow for the crisping market, a hard lesson was learned when a change of policy by a major customer meant that new outlets had to be found for 4000 tonnes of potatoes.
Chairman James Logan: “We had established our co-operative in 1997 on the back of that contract but overnight we lost around 50% of our market. It was very obvious we had to take steps to minimise our risk and through a marketing agent we now have a spread of contracts and plans to develop new markets.”
Fifteen growers are involved in East Lothian Potatoes growing over 600 acres of crisping varieties Lady Rosetta, Hermes and Maris Piper, mainly for Golden Wonder.
The group operates at minimal cost. There are no offices and no employees. Running costs are covered by a 1% levy at point of sale. Central storage was dismissed as it would have been a duplication of that already existing on member farms.
An agronomist works on contract monitoring fields and stores throughout the season and is responsible for quality control and decisions on delivery to specific factory outlets. The aim is to deliver a consistent product and eliminate rejections.
The group’s marketing agents MBM work on a commission only basis and act as the buffer between grower and processor.
James Logan: “It is a requirement that we have regular meetings with MBM to glean information on price, haulage and quality feedback. Both sides need to be frank and open if the arrangement is to work effectively.
“Although we market as a group, we are individual farmers growing for a specific market. It is essential to know the thoughts of the end user to allow us to work within our own farming strategies to provide group solutions.”
With the potato processing sector under-going radical change and placing more pressure on price, the group is examining the feasibility of extending into other markets with plans to sell Maris Piper into the volume consuming chip shop trade.
Potato production, with growing costs of £1200 per acre, is a relatively high risk venture and with contracts accounting for larger areas of production, growers’ risks require to be balanced between contracts and the free market. Co-operative groups such as East Lothian Potatoes assist farmers in managing the risk.
James Logan: “We are a relatively young FCB still on a steep learning curve. Our success so far is down to grower commitment, sound information and an open relationship with our agents and processors. That combination presents an opportunity to expand our business from its present 8500 tonnes.”