Potato growers in Poland can only dream of the current price level for good quality chips potatoes. Since last year's rich harvest, the market in the country has not wanted to go up. That is also not the case for the first months of 2017.
The fact that a slow but steady stream of French fries potatoes has been coming from Poland to the Netherlands since last autumn does not necessarily mean that potato growers in the country are also benefiting from this. There is still some optimism for the second half of the sales season, but the year is not off to a positive start.
A larger area and high yields, as a result of an excellent growing season, are advantageous taken care of that Poland has 2016 million tons of 'extra' potatoes for the 2017-2,8 season. The largest volume since 2012. This fact weighs heavily on the domestic market, which still mainly consists of street market sales. The Polish potato processing industry is also doing its part, but the expected 16 percent growth in processing is far from enough to make a difference.
The grower price is currently several percent below last season's level. Trade prices are even ten percent or more below the old level. And, according to Polish institute for the agricultural and food economy (Instytut Ekonomiki Rolnictwa i Gospodarki Żywnościowej), there is no end to the price reductions yet. An average market price of 87 złoty per 100 kg is expected for the 2016-2017 season. Converted to just under 20 euros per 100 kg. A decrease of 13 percent compared to the previous season. The grower's price is still below that.
The institute estimates that the average wholesale price is 12 euros per 100 kg (52 euros). A difference of 6 euros with last season and 3 euros below the multi-year average. The price level discourages arable farmers from further expanding cultivation. The institute therefore expects the area to decrease slightly, to 300.000 hectares. The area amounted to 2016 hectares in 307.000. Under average weather conditions – if such a thing exists – the harvest amounts to 8,7 million tons. A reduction of 400.000 tons compared to last year.
There is still optimism for the second half of the sales season. Especially because a shortage of good quality fries potatoes is expected in Western Europe. "Due to phytosanitary restrictions and a skeptical attitude of Western European importers, few Polish potatoes are expected to be used to fill the gap," the analysts write. 'Exports are expected to amount to 60 to 70.000 tons. An increase of over 50.000 tons compared to last season. It is mainly the mood that matters for the price and not the purchase of more tons.