Potato processors have slowly started processing the first potatoes of the 2019 harvest. However, the hot and dry weather means that these early potato crops develop more slowly. Can the factories make the connection?
The French fries producer Farm Frites is perhaps best known for the early French fries potato cultivation in Bordeaux in the south of France. However, almost all manufacturers grow potatoes themselves in this area or source raw materials from here. This year, Farm Frites is bringing the potatoes to the Netherlands with refrigerated trailers, for which it has a special transshipment location equipped has. This allows harvesting at high temperatures and the product remains fresh during the 1.000 kilometer journey. There are also more refrigerated trailers available than hopper trailers.
Harvest in the South of France
The area in this region is estimated at more than 1.200 hectares, which is good for a volume of approximately 50.000 tons. Dutch and Belgian processors use this to keep their lines partly running until the new harvest from Germany, Belgium and the southeast of the Netherlands is available. Due to the frost and persistent cold this spring, the French potatoes are also a little later than usual. That region also experienced temperatures above 40 degrees Celsius last week.
In Germany, the harvesting of the first French fries potatoes in the Palatinate started this week. However, it will take another 1 to 2 weeks before the potato flow really gets going. Grubbing has yet to start in Belgium as well.
Heat clearly noticeable
The very early German potatoes give an average yield. This is because these plots were already ripened for the worst heat. The high temperatures have had a serious impact on the later varieties, including the Première and Amora varieties, which are currently declining rapidly. The current trial harvest data currently shows an average yield.
This spring, on average, planting took place a few days earlier than in 2018. However, it remained cold for a long time, which slowed down growth. The current drought is also slowing down growth. In the next 2 weeks, mid-early varieties (such as Zorba and Innovator) will urgently need water. It will cool down considerably in the Netherlands this week, while it will remain very warm in neighboring countries. In Belgium and Germany, irrigation is hardly possible, so drought certainly has an impact.
Continue working on old harvest for longer
The potato processors are currently collecting the last batches of contract potatoes from growers and processing them. In the coming weeks we will gradually switch to the new harvest. There is also time for maintenance and expansion of the production lines, which means that production is not (yet) running at full capacity. In this way, factories try to bridge the gap between the old and new. What is special is that both free growers started looking for a buyer again at the end of June, as well as processors who purchased new batches.
The market for early potatoes in Germany shows a downward trend in prices. However, the price level remains very high at €70 per 100 kilos compared to previous years. The supply from Israel and Spain, among others, has dried up earlier than in other years, which means that German buyers are more likely to switch to products from their own country. The first skin-resistant potatoes are now being offered. Insiders think that there will be more demand due to the earlier loss of supply from Southern Europe. At the moment there is not much to notice in the Netherlands. The prices of early non-skin firm potatoes are under pressure.
Where is the market moving?
It will not be an easy task for potato processors to find a good connection. The weather forecast for the next 14 days calls for dry weather, although precipitation is also reported here and there. The heat continues to play a role, including in Poland. There was a lot of local precipitation there at the end of May, but it has been dry since then. The Polish Ministry of Agriculture speaks of an extreme situation.
The above also applies to France and Germany, among others. The current weeks are also crucial for the potato (future) market. The EEX picks 27 in the current week direction. However, with the current mixed reporting from Europe, this is not an easy task.