Flat market makes it difficult for Aviko pool

Traditionally, Aviko Potato was again the first this year with the pool price of consumption potatoes. On Wednesday, June 14, the growers participating in the pool heard during a meeting in Dronten what sales performance the Potato Growers Committee (ATC) has achieved for the 2016 harvest. That was a season characterized by highly variable weather conditions. The early potatoes could be planted on time, but the planting of the main crop was delayed due to excessively wet conditions.

Flooding affects part of the area
At the beginning of June, a number of important growing regions, including the southeast of the country, were affected by flooding. As a result, the development of the crop lagged behind significantly and a significant part of the area was lost. Ultimately, Aviko Potato's contracts in this region had to be adjusted downwards by 20.000 tons of potatoes and an arrangement was made with the growers.

Lowest hectare yield
However, the dangers were not over yet, because the wet spring was followed by a warm summer. This led to a growth spurt that caused many growth cracks in the potatoes. Due to the extremely dry and persistently warm weather, it was already clear at the end of August that regrowth would be minimal. This also became apparent during the harvest, which at Aviko Potato was the lowest in the past 46,5 years with an average of 10 tons per hectare.

Stable high market
However, the extreme spring weather initially had little influence on the potato futures market. Until week 30, it continued at a level of around 150 euros per tonne. Only when the effects of the drought became visible did the market rise to 250 euros per tonne in week 39. The market was able to maintain that level for some time before gradually falling to 225 euros per tonne.

At the end of February 2017, the forward price dropped briefly to 200 euros per tonne, eventually reaching a closing price of 221 euros per tonne. During the season, the daily price of potatoes on the effective market fluctuated between 200 and 250 euros per tonne.

Increase later in season
Due to the fairly stable price level during the season, it was difficult for Aviko Potato's Potato Growers Committee (ATC) to benefit from upturns in the market. The daily price on land fluctuated between 150 and 180 euros. Later in the season the daily price reached 250 euros per tonne.

Ultimately, the ATC achieved a price of 234,76 euros per tonne in week 13 for the Agria and Innovator varieties in the pre-sale pool. This includes the storage fee and average quality premium. The pool without pre-sales achieved 13 euros per tonne for both varieties in week 240,77. The other varieties scored 5 euros per ton lower.