Free Polish potatoes do 0 euros

The official Polish area figures from the Central Statistical Office GUS amount to 325.000 hectares. An increase of 5,5% compared to last year. This concerns consumption as well as seed potatoes and starch potatoes. Insiders take into account a slightly smaller area, but an increase is evident. After a year with strong prices last year - and many imports elsewhere from Europe - more table potatoes have gone into the ground this spring.

Dry and wet
The country hardly had a winter with little snowfall. The 2020 season started extremely dry. This situation continued until the end of June, when many Polish growing regions were treated to water. There are exceptions, even now. If you draw a line from Stettin in the north to Wroclaw in the southwest, everything to the left is dry to very dry. The climate along the Baltic Sea coast is more temperate and there were regular showers. This also applies to the light sandy soils in the northeast, where mainly starch potatoes grow.

This area, but also the southeast, is experiencing local damage due to flooding. Mainly due to heavy showers that fell in July and locally produced 120 millimeters in a short time. Low places have been flooded as a result, but nationally this is a very small share. More precipitation also fell along the border region with the Czech Republic than elsewhere. Heavy night frost in May caused early potatoes in particular to take a hit.

Heterogeneous yields
When the potatoes really had to produce, there was usually some precipitation, although in the southwest it sometimes rained up to 8 times. The GUS estimates that a potato yield of 27 tons per hectare should be possible nationally, although the regional differences are enormous. Areas that are severely affected by drought sometimes do not exceed 20 tons in tests, while 50 tons are also achieved locally. GUS now estimates the total yield at 8,5 million tons. That is simply way too much. It is 800.000 tons less than was harvested in 2017. The area was also slightly larger then.

To put it into perspective: Germany has a population of 83 million and an average total yield of 12,6 million tons. Poland has almost 40 million inhabitants, but harvests less than half as many potatoes.

While the 2019-2020 season was characterized by a strong price level, this season has been under strong pressure since the summer. On the wholesale markets, the prices for sorted and bagged table potatoes are between €8 and €13 per 100 kilos. There is hardly any demand for chip potatoes, insiders say. Factories indicate that they have no need for excess kilos. They are indeed there.

A hectare contract of 40 tons is common. Most potato growers still have 10 tons or more to sell freely this year. The price for this is currently €0. Livestock feed or biogas plants are the only buyers in the market, which has much more supply than demand. Starch factories have expanded their acreage this year and are also experiencing good yields. But consumption potatoes are therefore gradually taken up by these companies. Some chip factories even have theirs contracts adjusted so that we do not have to purchase additional potatoes at a price above the current free market.

Quality problems
Irrigated batches that are of good quality are still eligible for factories. Due to drought in September, harvesting often occurred under conditions that were too dry. The potatoes have a relatively high underwater weight, which makes bruising and other harvesting damage a major problem. There is no market for this product, say insiders. There is hardly any export at this stage of the season. Only towards the turn of the year does this increase to Romania and Bulgaria, among others. Ukraine itself seems to have a good harvest and is not on the market.

In addition, even at current market prices, table potatoes are imported from Germany. Growers there do not always have sufficient storage options, which further imbalances the market. Many Polish potato growers are also unable to store food, so it is only expected that the table market will become better after New Year's Eve. An advantage is that Poland currently has relatively few corona infections and daily life, with face masks, often continues as normal. Domestic sales are therefore good.

Harvesting went smoothly
Insiders estimate that about half of Poland's main harvest has now been harvested. Large professional growers, with several hundred hectares, have been busy harvesting despite the drought. In October it can freeze sharply at night, making waiting a long time a major risk. Irrigation for harvesting has often been necessary. It has now also rained in Poland. Locally a few tens of millimeters. Warmer and better weather is expected towards the first weekend of October, which will make harvesting conditions perfect. Harvesting can then proceed smoothly for the large growers. They are well set up for this.

The season doesn't end there yet. Companies in Poland must also start working with 1,4Sight for sprout inhibition this year. It's the first time for almost everyone. Growers who have ordered the product in time will only receive half of it. Anyone who arrived later was completely left behind. The administration equipment is also no longer available. Insiders therefore expect higher storage losses than usual due to less effective germination inhibition and the fact that the product has been stored warm and susceptible to germination.

Area reduction required
It is clear that the 2021-2022 season will be affected by the current situation. An area of ​​325.000 hectares is simply far too large for the needs and sales opportunities. The question is whether growers also realize this and act on it. This in turn depends on the cultivation alternatives such as grains, rapeseed, corn and sugar beets. After 3 dry years it has also become clear that irrigation is a must in many cases. Companies are concerned about high costs, which is an obstacle to cultivation. A decline in the area and professionalization of those who remain is the future.