With the French fry industry leading the way, there is currently plenty of movement in the European potato market. "Prices were stable at around €0.30 for a long time but began rising last Thursday. Given the processing numbers, we'd all hoped for and anticipated that increase, but in five days, it's climbed three to four cents. The dry weather means far fewer potatoes are available in Belgium and France. That is, thus, and not for the first time this season, setting the pace," begins the Dutch company Nedato director Wim van de Ree.
"The new season also seems to be starting later than usual. This week's weather isn't as nice as predicted, and with the rain forecast and last week's fickle weather, not many potatoes are being planted yet. Even the very early potatoes are not all in the ground yet. Plus, the end of April is approaching, so the old season will last two weeks longer."
"With the limited availability, that causes a bit of a mood in the market. Meanwhile, the first Belgian and French acreage figures have already been published and show no increase. Though I think that's an early analysis because the potatoes have yet to be planted," Wim says.
Raw material shortage
"Considering all the facts, it seems the old season will end with a limited volume, while raw material is sorely needed, given the factories running at full capacity. The market is, thus, very healthy and is attracting mainly the Belgians. On Friday, Belgapom was already quoting prices of €0.32,5."
"Several manufacturers in Belgium are also already offering €0.36 franco for specific varieties in the longer term. It's generally a very healthy market situation for potato growers. They, of course, face plenty of challenges, especially from official channels. But should that lead to a raw material market shortage and price correction, that's also a positive effect," explains Wim.
"Fresh potato exports are developing calmly. Yet, because the French fry industry has already taken quite a few of these - not always french fry varieties, but varieties that fry well - those sales are well stocked. Export potatoes have been priced at about €0.24 for a long time, but that's now increasing too. That's needed, too, now that we're moving to crate-stored potatoes. These generally have good quality. The air-cooled potatoes are almost all gone, and it's about time, too, as pressure spot damage is becoming increasingly common."
Ware potatoes return to pre-pandemic downward trend
"Ware potato sales continue steadily. The expectation that consumers had rediscovered potatoes after the pandemic hasn't materialized. We've returned to the pre-pandemic downward trend," Van de Ree continues. "However, the growing French fry industry offers nice alternatives, and given the expected acreage shift from table to french fry potatoes, that market should be well-balanced."
"Imported potato supplies are limited too. Some are coming from Israel and Egypt, but not many, and with prices of roughly €0.70, those are well priced. Malta hasn't had the best weather. Neither have other Mediterranean areas, while the lack of water in Andalusia poses major challenges. That all results in more limited supplies and high market prices," Wim concludes.
For more information:
Wim van de Ree
Nedato
48 Jan van der Heijden Street
3261 LE, Oud-Beijerland, NL
Tel: +31 (0) 186 645 945
Email: [email protected]
Website: www.nedato.com