It is quiet in the potato market. This is what Jan Van Luchene of Bruwier Potatoes tells us. "Since mid-December, prices have risen sharply. We were at 150 euros per ton of Fontane, but today it is 250 euros. There is little supply in the market, which makes it harder for Eastern and Southern Europe to keep up with our prices. As a result, demand drops a bit. If you have to tell your Greek or Tunisian customer, or whoever, every week that 50 euros per ton has been added, it just goes too fast. The market can't keep up with that."
Jan is otherwise satisfied with the new crop of Belgian potatoes. "Everything came in fine. There were some storage problems, but we have those every year," he explains. "Those have been solved by now. Yields did vary from region to region, and sometimes even from plot to plot. This was mainly due to the planting time. For some, it was late March, and for others, early June. That certainly had an impact, but at the end of the day, I think we have more potatoes than last season."
"Also, more free potatoes. Look, some growers harvested 40 tons per hectare and can only deliver their contracted volumes with that, but there is definitely more available for free trade than last year. I am convinced of that. I also hear it in Germany and France, which makes me a bit puzzled by the current high prices. It's great for the grower, but I didn't expect to be at such a price level this early in the season, especially given the harvest."
So how is this possible? "It's hard to say. After all, the industry is also very quiet. They are not as desperate for potatoes as last year. Maybe traders are short, and if you're short today, you just have to pull out the wallet. And maybe it's also a bit of speculation from people because they would like to see prices go up a bit. I think in the first few weeks/months, we'll maintain the price level. Preservation is good. The problems are gone, so everyone with good preservation is waiting quietly."
"For the last two seasons in a row, we've had to continue with old crop potatoes longer due to bad weather in spring. That led to prices of 500 to 600 euros per ton two years in a row, so I think those who don't feel the need to empty the shed will wait and see. How this will evolve toward the end of the season, I can't predict. Last year, because of problems with harvesting, we knew we were facing a potential shortage, so prices wouldn't drop again. However, I don't dare say that this season. We'll have to wait and see," Jan concludes.
For more information:
Jan Van Luchene
Bruwier Potatoes
Galgestraat 1A
B-8790 Waregem, Belgium
Tel: +32 56 61 33 33
info@bruwier.be
www.bruwier.be