The German potato market entered the new year with a steady mood. On Friday, January 4, REKA noted above the level of €30 for the French fries potatoes for the first time this season.
Compared to the last announcement of 2018, the average price is €1 higher. The top end of the market is filled with a maximum of €32 by Innovator (€35 would have been paid for delivery in April). This variety is followed by Agria (€30 to €31) and Fontane (€29 to €30).
Quiet start
The year usually starts quietly in Germany (just like in surrounding countries). In 'normal years', growers tend to make supply after the holidays. It is not uncommon for the market to be under pressure (price-wise) until February. The end of the season then depends on the mood that develops from March onwards.
This mood arises based on the European potato supply, but also due to an early or late spring. However, things are different this season, especially due to the significantly lower potato harvest in all major potato countries.
Lagging quotes
In Germany, quotations (especially given price developments in the Netherlands) lagged behind. For example, the cash settlement started in November with a contribution of €25,03, compared to €29,10 from the Netherlands (more than €4 more). In the last cash settlement of 2018, the difference was already smaller, but still almost €3. The contribution from Germany was then €27, while the Netherlands contributed €29,91.
The reason for the relatively large difference between the quotations is due to the supply (in recent months) of cheaper table potatoes, which the processors were able to obtain. Now that this market is also taking steps upwards (supply is drying up), this is reflected in the quotations in the chip potato market.