Sometimes the markets get out of balance due to extreme situations. This means that the destinations of products to other than those for which they were grown can be more attractive than walking the beaten track.
This situation is currently taking place on the potato market. It goes without saying that the market is bad and that there is no demand from regular buyers is also known. PCA quoted €1 to €2 for the potatoes from the field, noting that there was no trade or demand.
This data can mislead growers, as there is indeed demand. However, the demand does not come from existing customers. Growers who have delivered their contract volume to their regular customer are now faced with the decision whether to 'deliver' the remainder of the potatoes or leave it alone and look for alternative sales.
Forage trading demands
Processors who take potatoes in excess of the fixed price volume pay €1 to €1,50 for this. The question is where they will go. Do they go into the factory, do they go into the flakes or are the kilos sold to the starch industry? Taring always takes place.
The biggest demand for free potatoes is the forage trade for feed, but also starch growers who still have room in their contracts with Avebe. In addition, the prices are currently higher or equal to those of the processors, but without taring and virtually no chance of rejection. This means that a slightly higher balance can be achieved for the free potatoes.
An additional advantage is that these potatoes are really out of the market and therefore the potato mountain is removed sooner. It takes a little more effort for a grower to look for alternative sales (1 to 2 phone calls), but then the grower helps himself and the market.