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Inside Potatoes

Physical potato market feels calmer

June 14, 2019

All traders and processors on the potato market are longing for the end of the season. It has been a (short) and difficult season for many. However, the expected fierce final agreement does not seem to be coming.

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There is almost no free trade anymore. Dutch potato processors complete their receipt obligations and pay between €30 and €32 for the co-delivery kilos. There are currently many complaints about the baking quality. This is something growers had expected, given the special growing season and the fact that there are many physiologically older potatoes.

Transition Period
Dutch potato processors are now focusing on the transition around weeks 28 and 30. The Belgian processors are even aiming for an even earlier transition. This week there was still trading in Belgium at €31 (free of charge), but there is currently little interest in buying. The processors seem to be a little calmer, partly due to the good development of the early potato varieties. 

Sufficient rainfall has fallen in Belgium and Germany and growers say that growth is good. The area of ​​early potatoes has increased considerably, especially in Belgium, because growers wanted to respond to the expected shortage from the past season.

Early maintenance
Another strategy that is partly used by potato processors is to carry out additional maintenance and deliver fries from frozen stock. Processors want to enter the new season with the lowest possible stock of fries, because expensive fries in the refrigerator are not desirable for the balance sheet.

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