Israel’s potato and carrots industries were very happy to provide Europe the much needed produce that was in high demand this past 2023 season. According to producers and exporters from Israel, while they were happy to supply the high demand to meet Europe’s needs, they do wish that the import demand remains stable instead of fluctuating from year to year.
Israeli producers said the demand is driven by several factors that are affecting potato production in Europe. This includes the climate, high energy costs and the ongoing effect of the Russian war in Ukraine. “This demand is driven by some dimensions such as climate due to the global warming effect, less rainy days, low yield, poor quality and high energy costs in Europe as a direct effect from Russia’s war in Ukraine. The increased growing cost in Israel and Europe, which is not compensated enough by the markets and demotivate growers to switch and not grow some vegetable categories, while other commodities are becoming more price attractive such as wheat,” explained one grower.
Exporters say not only was there high demand from across Europe, but the United Kingdom also looked towards Israel to supply them with more potatoes this past season. “Our produce is on the Western international wholesale market in London. Our branded potatoes signals the Israeli quality and brings our fresh produce to the UK market. We supply product for the South and North of Europe. But, our supply has come to an end just before the arrival of the European crop. To meet the higher European demand we have taken some of the product destined for the local Israel market, which we don’t normally export, to those planned in programs. We have loaded the last volumes for export to Europe earlier in June. From the middle of June it will be too risky to load for Europe.”
Israel's Vegetable Growers Organization, said potato exports have increased a lot compared to previous years. Potato exports increased from 140,000 tons to 200,000 tons while the price for farmers rose by 10%.
Another producer and exporter of potatoes from Israel said, while the European market demand and prices were high, they wish that it does not fluctuate so much from year to year: “The European market was high for all origins of potatoes. The quality and good volume is important. However, there was definitely high demand, it was very busy. It’s good to have the demand, but not good to have the fluctuation from year to year. It is very important for us that we must look after our customers who we have programs with. The higher demand places extra pressure on us as company who prioritises supplies to those who we have programs with year-on-year. The customers and market must decide if there’s a place for even a small window for each importing position. It is very nice to go all year round and support local farmers, but they must plan correctly to have a small amount of imports in the plan. This is to make up for any shortfalls.”
“We work directly with supermarkets and packers. We are definitely committed to our long term customers, those who we see year on year. When the market is short, there can be a temptation to supply those who are short. The most important thing is to look after those long term clients. It is important to work together year on year,” another grower and exporter commented.
With the potatoes export season in Israel finished growers and exporters said they are happy to have seen the same high demand for carrots from Europe too. Israel supplies potatoes and carrots as a private label for leading retailers across the United Kingdom. Carrot exports leaped from 15,000 tons to 50,000 tons and the prices were up by 20% compared to last year according to Israel's Vegetable Growers Organization. Israel’s carrot season also finished on a high this year.
For more information:
Israel Vegetable Growers Association
Tel: +972 03 6090050
www.yerakot.org.il