Aussie fish and chip shops hit by processed potato shortages as costs continue to rise

Australian chippy fans have been left wondering if they will be able to get their hands on some hot chips this summer, with the weather wreaking havoc on potato crops and a potential potato shortage seeing the price of hot chips rise.

SmartCompany spoke with family-owned Brisbane fish and chips restaurant The Barra Boys, which is based in East Brisbane, run by father-son duo Stace and Nick Mavris and, other than family, employs five staff members.

Nick Mavris says while the potato supply had been an issue for the business, the potatoes had started coming back in. 

“The potato shortage has been a problem the last couple of months and we had to shop around with different suppliers, but it’s finally started to come back in over the last couple of weeks and we’ve been able to stick with one supplier,” Nick said.

And the family-run business is also paying more for the essential ingredients. “The price of potatoes has now gone up from $38 a box to $52,” he said.

Victoria fish and chips restaurant Fish by Moonlite also confirmed that it had been affected by the shortage of potatoes. 

The potatoes that are used for chips are referred to as processing potatoes, which are different from the fresh (loose) potatoes that shoppers find on supermarket shelves.

According to the Department of Agriculture, Fisheries and Forestry, processing potatoes refers to unprocessed potatoes that are used in the production of other goods, except potatoes processed at a processing establishment, while unprocessed potatoes are potatoes for the fresh market, processing potatoes or potatoes for seed.

Shaun Lindhe, national communications manager for AUSVEG, the peak industry body for the Australian vegetable and potato industries, says it is unclear how long the tightened supply of processed potatoes will last. 

“The increased demand for processed potatoes, coupled with unfavourable weather conditions, is leading to a tightening supply of processed potatoes, which are used for potato chips, crisps and other potato products,” he told SmartCompany.

“While it is unclear how long this tightened supply may last, these issues occur from time to time and are usually only experienced in the short term once supply levels resume to more normal levels.

Lindhe says continued wet weather in key regions, particularly in Tasmania, has affected the planting windows of potato growers, as well as causing delays in planting and being able to prepare paddocks with farm machinery.

“On top of this, growers in the region are facing significant increases in the costs of production for critical farm inputs, including fertiliser, energy, fuel, labour and chemicals, which is adding to the burden that growers are facing in trying to get their crops planted, harvested and sent to processors,” he said. 

Consumers urged to support growers

With Australian growers under continued pressure, Lindhe urged consumers to support local growers during the festive season and into 2023. 

The current shortages have followed “a period of reduced confidence” in the sector, Lindhe explained, as well as significantly higher production costs, which have reduced the profitability of many growers. AUSVEG has heard from producers that production costs have increased by an average of 25% for businesses in the vegetable and potato sector, he said.

“Growers were already operating in a challenging and unpredictable environment, and this is another blow for hard-working farmers trying to feed Australian families. It is important to remember that the price that consumers pay for their frozen potato products is not what the grower receives,” he told SmartCompany. 

A Department of Agriculture, Fisheries and Forestry spokesperson said the recent extreme weather events related to the current La Nina have resulted in losses across agricultural industries.

“The impact of the recent flooding events is likely to put pressure on availability and prices for a range of fruit and vegetables in the short term,” they said.

“Future prices for fruit and vegetables will depend on the extent of further rainfall and flooding and producers’ ability to plant their next fruit and vegetable crops.”