The heavy rainfall in West Flanders keeps causing issues. Flanders' Minister-President, Jan Jambon, has announced that the flooding will 'most probably' be declared a disaster. Those who have suffered damage will be helped as quickly as possible. Indeed, between 20 and 30% of potatoes have yet to be grubbed in that area of Belgium. "We just need one dry week so we can do that. But, that keeps being postponed," begins Jan Van Luchene of Bruwier Potatoes.
"It's a mess. A month ago, we thought we'd have more than enough potatoes for stable, year-long prices. Now, a month later, things look entirely different."
Belgian trade organization Belpotato does not paint a hopeful picture for potato crops, reports VILT, the Flemish agriculture and horticulture information center. It saw how poor weather conditions in the spring already delayed the start of the growing season. That prevented the fall work from starting early. The beautiful weather in September provided the potatoes with some welcome extra weight, although the high temperatures weren't ideal for long-term storage. Heavy rains in October and November meant many plots couldn't even be grubbed.
"As long as temperatures remain good, much can still be saved. There will, naturally, be some losses, but the drama on a macro level might not be too bad. It's disastrous for growers. Belgium having a significantly higher percentage yield hopefully offsets the losses we'll most likely suffer. With one dry week, much can still be saved. All is, thus, not entirely lost yet. Not everything still in the ground now must be lost, though. That will change everything," says Jan.
Increased yield will hopefully negate losses
Free market potato prices have risen sharply since it began raining so heavily. "Those doubled from €100 to €200 per ton in three weeks. The industry's not driving that because demand from there isn't that great. Neither are exports. It has more do to with people trying to get their hedging in place. That's why prices are skyrocketing."
"People have potatoes that were meant to be stored but are still in the ground. When those potatoes are grubbed, they'll no longer be suitable for long storage. They'll be sold quickly. However, that becomes difficult if you don't have commitments until May or June," Jan explains. "Those people will then start looking for dry potatoes to move from one warehouse to another to meet contracts later in the year. They can then cover themselves, but it also means there's little free market supply now. That's what's spiking prices."
The trader dare not yet speculate how this situation will translate into the rest of the season. "That remains to be seen; it can change at any time. Obviously, it's completely different from two weeks ago, but we still cannot make a definitive estimate. As I said, the higher yields could still negate the losses, but then the weather has to turn. And should you have another spring like this year, with late planting, you have a different situation. It never stops with potatoes," Jan concludes.
For more information:
Jan Van Luchene
Bruwier Potato
es
1A Galge Street
8790, Waregem, BE
Tel: +32 (0) 566 13 333
Email: [email protected]
Website: www.bruwier.be