Potato prices in Portugal are too low. That is why the Portuguese government chooses to make money available so that it can support the potato sector in the country.
The money is made available to finance the storage of potatoes. This until more favorable prices arise. The fund sets a guaranteed value of €60 per tonne for the stored potatoes.
The Minister of Agriculture, Luís Capoulas Santos, explains the decision. "The Portuguese government has decided to support the storage of potatoes during this period when prices are too low. Withdrawing part of the production from the commercial circuit is an appropriate measure to restore the balance between supply and demand. "
Low demand visible everywhere
Until July 30, prices on production markets in Portugal ranged from €50 per tonne to €100 per tonne. The highest prices were recorded in Beira Interior (€200 per tonne) and in the Algarve (€450 per tonne). The latter location mainly scores high because it is a tourist area in the summer. However, in every area there is a lot of supply, but the demand for potatoes is lagging behind considerably.
Less imports
From January to May 2017, Portugal imported 27.344 tons of seed potatoes. That is 1% less than in the same period in 2016. That number then amounted to 27.522 tons. According to the Ministry of Agriculture, imports of potatoes for consumption have also fallen by 20%. In 2016, that number reached 180.274 tons between January and May. In 2017, that number fell to 143.562 tonnes during the same period. As for new potatoes, imports to the country have fallen by 10%.