News Potatoes
NEPG: potato area limited by seed potatoes
The European growers' association NEPG does not expect the potato area in the largest potato countries to increase much in the coming year. The limitation in the supply of seed potatoes ensures this. This results in a rising price, which cancels out a contract price increase.
The North-Western European Potato Growers (NEPG) estimates the total harvest for 2018 to be almost 18% lower than last year. There are also quality problems. All these batches have now been processed, so that the current stock is of good quality. Nevertheless, the association notes that rot still occurs.
Dual purpose varieties
The NEPG expects a seed potato shortage for the coming season, especially of large French fries potato varieties. Those who do not sign a contract will find it difficult to obtain seed potatoes, it reports. Higher contract prices therefore do not lead to much expansion, because there is no starting material. It therefore expects more dual-purpose varieties to be planted from the starch and table potato segments.
In the EU-5, contract prices have increased by 10% to 30%, depending on the variety and delivery period. The NEPG also notes that cultivation costs have increased by a similar level, negating the price increase.
Spring and water
Two things are crucial for the start of the coming growing season: the arrival of spring and the available water reserve. In a late spring, the mood in the market can change, the organization believes. When the processors are forced to run on the old harvest for a long time, this puts the situation under pressure. If the spring is (very) early, a high price level can be suppressed. The NEPG currently sees €2 per 30 kilos as the bottom.
Due to the relatively high price level, overseas destinations are more likely to drop out. Exports to Southern and Eastern Europe are now proceeding in fits and starts, especially from France.
Groundwater level
Water availability may dictate next season. For 3 years in a row, the groundwater level in the EU-5 has been lower than the 10-year average. If there is not enough rain and snow this winter, the water supply will not be replenished enough for the coming season.
Niels van der Boom
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