The North Western European Potato Growers (NEPG) organization underlines the shortage of seed potatoes for the 2017-2018 season in a press release. However, the consequences for the acreage differ per country within the EU-5. On the contrary, processing is increasing, which means that as many alternatives as possible are being sought. Old varieties are experiencing a comeback as a result.
The NEPG also concludes that the availability of seed potatoes dictates the area expansion. With an increase in processing capacity from 700.000 to 800.000 tons, the demand is certainly there. The contract prices of early potatoes, for delivery in mid-July, have increased by an average of 3 euros per 100 kg. For the main crop of chips potatoes, that is 1 to 1,50 euros per 100 kilos. The starting position of the contracts has often not changed, but is negotiable.
However, according to the potato organization, differences within the EU-5 can be detected. Great Britain, for example, does not have a seed potato shortage and the situation in Germany is slightly less pressing than in the other three countries.
It is a matter of looking for alternatives to be able to realize an acreage expansion. Among other things, planting the size 28/55 millimeters, cutting seed potatoes and using dual-purpose varieties in starch areas. New promising varieties are also highlighted. According to NEPG, 'old varieties' such as Bintje, Asterix and Desiree are going to experience a comeback. Bintje, in particular, is aiming for substantial acreage growth in Belgium. Nevertheless, the processors do not compensate Bintje's high seed potato costs in their contracts. Because chip factories largely control the seed potato supply – and return of the total yield is mandatory – an expansion of contract cultivation is taken into account.
With a normal season and hectare yield, there are sufficient potatoes available – even if an area expansion does not take place – according to NEPG. It also takes capacity expansion into account. The yield per hectare ultimately has the greatest influence. Not the acreage.
Inventory figures, which will be published at the end of February, are expected to be lower than last year in this period. Due to higher tare percentages, more tons are needed to fully deliver the contract, which means that the volume of free potatoes is certainly lower. The daily market reflects this. 95 percent of all German storage potatoes already have a destination. In addition, NEPG estimates that Great Britain will gain further market access on the mainland. That is already happening cautiously.
© DCA Market Intelligence. This market information is subject to copyright. It is not permitted to reproduce, distribute, disseminate or make the content available to third parties for compensation, in any form, without the express written permission of DCA Market Intelligence.
