'Season 2020/2021 will be a challenge', warns growers organization North-Western European Potato Growers (NEPG). There is a fear of imbalance between supply and demand. More supply is expected, especially in the autumn.
Contracts are currently being signed between growers and the processing industry. Not always to the grower's satisfaction, reports NEPG. Field prices in the contracts (with the exception of Great Britain) remain the same or are slightly lower than last season. Contract prices have risen for longer storage.
Consequences of CIPC ban
At the same time, a cost price increase for growers is expected due to the disappearance of diquat and chlorpropham (CIPC). This will make the coming season a particular challenge for growers who store their potatoes for a long time. NEPG expects more supply of potatoes from the field in the autumn, because many growers are not yet aware of the consequences of the CIPC ban. The risk that this will be at the expense of the quantity and/or quality of the potatoes is high.
Demand from the manufacturing industry in Europe is growing, but the area increase is even larger according to NEPG. 'With an average harvest, this could lead to an oversupply. That in turn can lead to price pressure for growers.' Brexit also plays a role in this. This may affect the flow of potatoes and potato products in the coming potato season.
Quality challenge
At the moment, despite the larger harvest, the market is in balance and the quality in storage is generally good. NEPG wonders what this will be like at the end of spring. In some countries, quality in storage is a challenge. The stock inventory at the beginning of February in Belgium shows higher stocks than last year, but lower than in 2018, according to a grower survey in Belgium published this week.