Caring for quality
NEPG sees opportunity for potato market
The North-western European Potato Growers (NEPG) has all current stock measurements for potatoes in the EU-5. The figures once again confirm the overcrowded situation on the potato market. However, it also sees a small chance before the end of the season.
A larger area (+6%) and a higher yield (+11%), compared to last year, have ensured full storage facilities in the EU-5. This strongly influences price formation. This while the manufacturing industry is declining 15% more, compared to the 5-year average. Exact figures on stocks in Belgium, the Netherlands, Germany, France and the United Kingdom calls the NEPG does not.
5
percent
more tare
In December, the NEPG spoke of an average tare percentage of 5% for French fries potatoes this season. The organization now doubts that. New stories of preservation problems keep popping up. One breed stands out. This does not alter the fact that there is more than enough raw material available for processors. Nevertheless, the factories are currently acting as a buying party in the market, the NEPG notes.
Baking quality
The quality of potatoes in storage is good across the board. However, there are many repositories that have been emptied earlier due to quality issues. Baking quality issues are expected before the end of the season. The cold weather in northwestern Europe is also giving the market mood. The persistent cold affects the planting of the new crop. Planting is now being delayed in some early German growing regions.
The required amount of extra potatoes (which the factories ask for) is available in the form of over kilograms, which have been grown outside the contract. As a result, the free market is sidelined. Favorable sales prices lead to more export of table potatoes, the organization notes. Ready-to-eat potato products are also being sold more.
Contracts below cost
Contract prices for the 5 harvest will fall in the 2018 main potato countries. The NEPG talks about price reductions of 5% to 10%. The prices are therefore lower than in 2017 and in some cases even lower than in 2016. In all cases, the prices are below cost.
The organization therefore calls on arable farmers to plan a 'realistic acreage'. A reduction in the Bintje share in Belgium and France will decrease further, which means that the average hectare yield can increase for the coming harvest.
Niels van der Boom
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