Hot chips set to return to menus as potato harvest gets underway

Consumers should see more potato products in supermarket freezers in the coming weeks as chip factories operate at capacity to meet demand, but the industry warns another shortage could be on the horizon.

Wet weather and fewer potato imports in 2022 resulted in empty frozen chip shelves in supermarkets across the country and trying times for fish and chips shops, but growers say the current potato harvest should quell the short-term demand.

Potato harvests are underway in Tasmania and Victoria, Australia's largest production areas for French fries.

Processing companies Simplot and McCain have opened up their factories in both states, turning spuds into chips for fast food outlets, food service and supermarkets.

But some growers warn that smaller plantings and lower yields could see a repeat of the potato shortage again next year.

The harvest has been slow and staggered to kick off.

That's mainly due to the fact that potato plantings were interrupted by wet weather in spring last year.

Head of the Tasmanian Simplot potato grower committee Leigh Elphinstone said a workforce of backpackers, Pacific Island workers and locals were picking, and the harvest was looking good with the numbers of "reject" potatoes low.

"I would say hopefully soon that the chip shortage will definitely ease … and the factories can catch up with their orders and supply," Mr Elphinstone said.

Vice president of horticulture for the Victorian Farmers Federation, Katherine Myers agreed.

"The factories [in Victoria] are up and running with potatoes from South Australia and the Victorian/New South Wales Riverina area," she said.

"The Victorian Central Highlands [around Ballarat] will start coming in the next month or so.

"We should start to see improved availability of chips in fish and chip shops, and on the shelves as the harvest progresses."

Potato chip rationing kicks in with WA's biggest wholesaler of spuds.

Both farmers, however, have a warning.

Mr Elphinstone said there could be another shortage of chips on the horizon.

"Because there is a smaller volume planted than desired, I wouldn't be surprised if there's going to be the same chip shortage for next year," he said.

Ms Myers said the industry "won't be back to normal for a fair while, and total yields are expected to be down this year."

"European supply won't pick up until after their next summer, and given the severe weather New Zealand has seen, I don't imagine their yield has been phenomenal this year."

While the potato varieties needed for frozen chip processing chip have been in short supply, there hasn't been a shortage of varieties sold as fresh potatoes.

Ausveg's Shaun Lindhe said that currently, imports were not filling the gap.

While imports of frozen potatoes went up slightly in 2022, there is still a gap in the frozen chip market due to the drop in local production.

He said it was a gap that could not be filled by more imports, as European and US potato production had been affected by drought.

In 2022, 155,511 tonnes of frozen/preserved potatoes and 68 tonnes of dried potatoes were imported into Australia, while 13,793 of frozen/preserved potatoes were exported.

The two big potato processors McCain and Simplot said 2022 was a challenging growing year, but current harvests were going well.

McCain said yields were good, and their processing plants across Australia were operating at full capacity.

However, the company warned there were still challenges ahead, with a simultaneous increase in demand for frozen fries coinciding with reduced supplies.

Simplot's Ulverstone chip factory is operating at capacity and has processed about 28,000 tonnes of potatoes so far this year.

The company said the early signs were that it would have a reasonable harvest in 2023.