Both last year and this year there are problems with the availability of organic potatoes in Germany. In 2016 due to drought and this season due to excessive precipitation. As a result, some crops are still in the ground. That makes the offer for supermarkets small. What is the market doing?
Not all organic potatoes in Germany have yet been harvested. There are still plots in the ground in Lower Saxony, Schleswig-Holstein and Saxony-Anhalt. It is certain that not all crops will be harvested. Rain is the big spoilsport. Growers cannot enter the land with their harvesters. The problems in Lower Saxony in particular have consequences for the organic market. This state supplies many of the organic potatoes for German supermarket chains.
Revenues are at a below average level. Due to poor quality, the tare content is high, which makes the net tons even more disappointing. Ultimately, this means that the available volume of organic potatoes for the German market is small.
Big difference in gross-net
It is difficult to estimate exactly how many tonnes the harvest is. There is reportedly a big difference between gross and net tons. Packers charge percentages of 30% to 40%. Consignments are now being delivered early because problems arise in storage. The acreage did not increase in 2017, which raises the question of whether there will be enough potatoes available until spring.
The question is whether other European countries can supply Germany with organic potatoes. In addition to Austria and the Netherlands, Denmark is also an exporter. Organic potatoes were also imported from Sweden last season. German traders do not expect much from the Netherlands. Wet harvesting has also taken place in our country and there are quality problems. In Bavaria, the harvest and quality of organic potatoes are better, although problems also occur here. There is a lot of demand for product in the state, but the available volume is small and not enough for the whole of Germany.
Preference for local product
German supermarket chains prefer locally grown produce. The discounters also show an advantage for German potatoes. That is a difficult task with the current small harvest. Supermarkets last managed to have sufficient product in the 2014/2015 season. After that there were problems with availability every year. The volume of potatoes is supplemented with product from Egypt, Israel and Spain. Austria does have enough potatoes to export.
Despite the small harvest of organic potatoes, the current price level is below that of last year. In December 2016, price increases from €66 to €75 per 100 kilos were observed, free of charge at packer. At the end of November, supermarket chains will start a new purchasing round. There is a good chance that prices will rise due to scarcity. The current scenario is bad news for the growers. They need a high price to compensate for low yields and quality problems. Such market developments discourage growers.