The levy-funded Potato Council has revealed that potato stocks in November 2012 dropped by 18 percent year on year, as a result of the adverse weather and field conditions. The Council, which released a report on the Cost of Potato Production in North-Western Europe at the end of January, also said high costs and low returns are proving challenging for growers.

In its latest report, the Council revealed potato production fell to 4.64 million tonnes in the UK in December, a drop of 24 percent. Although the reports paint a relatively sombre picture of production, it was posited that the number of outgraded potatoes would fall as a result of tighter supplies, meaning less waste.

The Council said in January that the "greatest challenge for North-West European growers remains to establish clear recognition of the full cost of production," alongside securing finance and sustainable returns with significantly reduced grower numbers. The council added that its report was produced at a time of "unprecedented economic uncertainty in the Eurozone, and impending CAP reform, in addition to the aftermath of a season (2011) of extreme price pressure," and explained that the market for potatoes remains weak.

The UK was EU's joint number 2 potato producer, tied with France at production of around 5.3m tonnes per annum in 2011, though 2012's declines will affect this standing. Belgium, on the other hand, is fast becoming the North-Western EU's main hive of activity; there, potato production has increased by 48 percent since 2008, compared to a 7 percent decline in the wider region.  

In its January report, the council suggested Belgian exports are "creating stability from an otherwise mature and declining market," leading limited growth in the market. However, prices remain low, and there is less credit available for growers – a situation which "could worsen as the Eurozone crisis unfolds," according to Potato Council.

The Council concluded that, "The weak nature of the market begs the question how Belgian growers continue to increase production at such a rapid rate and with little expectation of improved buying prices, particularly with forward contracts." Though there was a suggestion that economic developments within Europe could potentially make conditions more favourable for growers in the future.

Differences were shown to persist between the British market and the rest of the Western European sector, where a much higher percentage of potatoes are sold to manufacturers of processed potato products, unit sizes are generally smaller and there is growing demand for organic production.