Now that the Polish potato harvest is almost complete, the balance can be drawn up. It is not surprising that the harvest in the country has been severely damaged by the dry growing season. Continued demand for potatoes, however, means that the price is at a record level.
Agricultural Institute IERiGÅ» speaks in the October report of a ware potato harvest of 6,7 million tons in Poland. That is slightly more than the 6,5 million tons that was previously written about. Nevertheless, it remains a very small harvest, which is 11% lower than in 2018. Reportedly, 97% has now been harvested. Only in northern Poland, where it is wetter than in the south, has yet to be harvested.
Size sorting
In addition to a low yield per hectare, it is also important that the grading is very fine and the quality shows defects here and there. There is a healthy demand for good product in the size 50 millimeters upwards. Buyers are willing to pay good money for these lots. The growers are, however, very reluctant to sell, because they estimate that the price could rise further.
The supermarkets and other retailers are trying to keep their supplies up to date with imported potatoes. These parties are reluctant to pay the highest price for a reduced quality. A high import level is therefore taken into account for the 2019/2020 season. In the period between May and July, it already imported large quantities of table potatoes. This concerns more than 90.000 tons for the whole of 2018. In addition, 105.000 tons of French fries potatoes were imported. A doubling in 3 years.
Price holds up
Generally, Polish price formation shows a clear downward trend as the harvest gets underway. This year it is different. Completely in contrast to Western Europe, the price holds up. wrote a month ago IERiGÅ» even that it expected falling prices as the main harvest gets underway. That has happened only to a limited extent.
At the beginning of September, the market price stood at €37 per 100 kilos, with the price falling only €3 since the start of the harvesting season. In mid-October, the price has been converted to €25 to €30 per 100 kilos, while 1 year earlier it was still €18 per 100 kilos. This concerns the wholesale prices for sorted product (table potatoes). This price level is record high for this time of year.
PotatoNL quotes a price of €14,50 to €16,50 for exportable product at the end of October, making the Netherlands an attractive destination. Most potatoes are imported from Germany.
How does it go on?
The current price level is expected to decrease slightly further; especially when winter sets in. Many smaller Polish potato growers do not have good storage options. As long as the mercury doesn't drop below zero, they can afford to be wary of selling. However, long-term storage is not an option for many companies. Another factor is the fact that imports continue at full throttle and that not every batch is of top quality. If you wait too long, you will get the lid on your nose.
In any case, it is certain that both the processing industry in Poland and the table potato market are laying solid ground in the market this season. It is important for the Netherlands to remain competitive with Germany and France.