Cash Settlement up almost 40%

On Wednesday, May 20, the CS still quoted €1,80, a week later it was €2,50. That is still a meager figure, but considerably higher to the left or right: almost 40% in percentage terms.

Will a rabbit come out of the hat after all? One thing is clear, the market developments in recent months during the corona period have been a source of frustration. This has been reinforced by the long-standing uncertainty about how the RVO scheme should be interpreted.

It is now clear that contract potatoes are excluded from the scheme. This implies that processors will still process the potatoes they already have (contract) into an end product or decide to drive them towards feed. The question is also what to do with, for example, the potatoes supplied: process or not?

Nice addition
Processing means paying for potatoes for €1,50 per 100 kg and sending chips into the cold store for very little money. This lack of clarity about what to do or not do with the potatoes results in the feed price being reduced by €1,25 per 100 kg one day and €2 the next day. This effect can be seen as the reason for the significantly higher CS.

The demand for feed potatoes remains high at these market prices. Due to the persistent drought, roughage yields are disappointing and the cheap potatoes in the ration are a welcome addition.