The loss of potatoes due to wet harvesting conditions and storage problems can be up to 5% this season. That estimate is made by the United Growers Arable Farming (VTA). But can that turn the market around?
As a result of excessively wet harvesting conditions, in combination with the very low potato prices, several growers have decided not to harvest problem plots. Furthermore, various storage problems are reported in the 5 NEPG countries. This is partly due to rot and other storage problems. Adding these two components together, the North-Western European Potato Growers (NEPG) estimates the loss at approximately 2%.
Low dry matter content
In addition, the processors need more raw material per kilogram of end product, due to an average lower dry matter content. Furthermore, low prices not only stimulate the export of fresh potatoes for consumption, but also create additional opportunities for various potato end products.
Although these factors could (theoretically) stimulate the demand for potatoes, this does not happen. Despite the increase in demand from the processing industry in the last 5 years of more than 13% to 15.244.900 tonnes annually, the VTA that the current (too) large harvest will prevent a healthy balance between supply and demand for the time being.
New season
It should be noted that the spring months can be unpredictable. This season, 5,5% more was planted in the NEPG countries. Together with an average higher yield in all countries, this results in a low market price, far below the cost price for the growers.
The NEPG expects that the financial results of this harvest, which are very disappointing for growers, will be taken into account in the grower's decision regarding their potato area for next season.