In brief: The Jersey Royal Potato Company says fuel costs have more than doubled this year, driven by conflicts in Ukraine and the Middle East. The rising costs affect not just machinery and transport but also fertilisers and plastic crop coverings. The company is trying to absorb as much of the extra cost as possible rather than pass it on to consumers.
Fuel Bills Double as Oil Prices Squeeze Jersey’s Most Famous Export
It is not easy being a potato. You spend months underground, you get dug up, and then the global oil market decides to make your journey to the dinner table considerably more expensive. That, in essence, is the situation facing the Jersey Royal Potato Company, which has told Bailiwick Express that fuel costs have “more than doubled” this year.
Mike Renouard, business unit director at the Jersey Royal Potato Company, pointed to a combination of geopolitical pressures as the root cause. “Fuel’s been fluctuating a bit for the last few years with the war in Ukraine,” he said. “That was compounded by the war in the Middle East. Fuel prices started increasing pretty much as we were going into production and it’s been increasing ever since.”
The company’s heavy machinery runs on red diesel, a somewhat cheaper variant of standard pump diesel, while the minibuses that ferry workers to the fields use regular pump fuel. Both have become significantly more costly, but Mr Renouard was keen to stress that the pain does not stop at the fuel pump.
A Chain Reaction: Fertilisers, Plastic and Ferries
Oil and gas prices ripple through the entire production process in ways that are not always immediately obvious. Fertilisers, depending on their type, can be manufactured using oil or gas, meaning their cost tracks global energy markets closely. Plastic sheeting, used to protect the crop during winter, is itself derived from oil. Then there is distribution: getting Jersey Royals to mainland supermarket shelves involves ferries and lorries, both of which are directly exposed to fuel price movements. Mr Renouard described the cumulative effect as having a “significant impact” on the company’s overall costs.
Despite all of this, the company appears reluctant to simply pass the bill on to shoppers. “I don’t think consumers can afford food prices to go up too much either, so we try and absorb as much of that cost as we can,” Mr Renouard said. It is a position that will resonate with islanders already feeling the squeeze of the broader cost-of-living pressures that have characterised recent years.
A Difficult Season, but a Possible Silver Lining
The fuel cost crisis has arrived on top of what Bailiwick Express describes as a year of record-breaking weather. The winter was the third-wettest on record, and it was followed by the hottest summer ever recorded in Jersey, with more days above 30 degrees Celsius than at any previous point. The combination took a toll on potato yields.
However, Mr Renouard sees a potential upside in adversity. Potato yields on the UK mainland have also declined, meaning there will be fewer main-crop potatoes in storage heading into the season. “That might be an opportunity for us,” he said. “There’s not going to be so many main crop potatoes in store and [shoppers] will be looking for a newer, fresh crop.” In other words, reduced competition from British-grown varieties could help Jersey Royals command stronger demand, even if the cost of producing them has risen sharply.
Source: Bailiwick Express
