The German potato growers are looking forward to it, after 2 good years in terms of price. This is apparent from the expectations of the acreage for the 2017 harvest.
The final area was set at 242.400 hectares last harvest year. For the coming season this would be almost 255.000 hectares, an expansion of no less than 5 percent. After a number of years of shrinkage (from 275.000 hectares in 2007 to 237.000 hectares in 2015), a significant expansion has been visible again in recent years. The moderate grain prices versus the good potato prices are to blame for this.
Largest expansion in Lower Saxony
The largest area expansion for the 2017 harvest year will be in the state of Lower Saxony. Last year this involved an area of 108.000 hectares. This year, according to expectations, it is 115.300 hectares.
Lower Saxony is a state in which the area of chip potatoes has expanded considerably. This also makes sense given the number of processors operating from this region. Bayern is another state where many French fries potatoes are grown. However, its area is, remarkably enough, unchanged at 40.500 hectares.
What does this do for price development?
The question is what the area expansion in Germany, but also in France and Belgium in particular, will mean for price developments. The question is difficult to guess. However, the growing season is decisive. With an average hectare yield, the total German harvest could amount to 11,5 million tons, compared to 10 million tons in 2016.
A positive point also remains that German processors have been able to benefit significantly from the increasing worldwide demand for end products. Nevertheless, an oversupply of raw materials with a normal to above-average harvest, in combination with a larger acreage, will not make it easy for a positive market price development.