Seed potato market down due to difficult sales

The seed potato market was in mid-August favorably. A reasonable yield was expected, the first indications of quality were good and sales to early destinations in Asia, the Middle East and Africa certainly did not go wrong. The feeling in the market has now turned almost 180 degrees. The relatively good growing season did not produce top yields, but the yield is slightly above the multi-year average. In short: there is more than enough supply, the interest has just disappeared.

Market buried under corona crisis
The seed potato market is suffering considerably from the fact that the processing industry is in quite dire straits due to the corona crisis. The contracts may have been concluded last year, but the seed potato trading houses are keen on the free part. Certain sales markets, such as Bangladesh, Pakistan and various countries in the Far East, can still be viewed from a fairly positive perspective. In Bangladesh, for example, potato cultivation is being stimulated by the government, which means that there will continue to be a demand for Dutch seed potatoes. The problem, however, is that the volumes in these countries are relatively small and they are expected to be even smaller this year than in previous years. So that does not solve the problem.

The large volumes mainly go to countries such as Egypt, Algeria and Cuba. The problem is that these countries are currently not interested in our seed potatoes. Not only because there is still product in the refrigerator, but also because sometimes there is simply no money. Take Cuba as an example. That country is largely dependent on its tourists, but there are almost none this year. This means that the income pot has taken a big hit. As a result, less seed potatoes are also purchased from the Netherlands. The fact that Dutch trading houses want payment security also plays a role. Taking risks is not considered wise in this uncertain market.

Are there any alternative sales markets for the Netherlands? Not much if it is up to a number of trading houses. The exporting Netherlands already controls a very large part of the world, which means that there are not many alternatives left. And, if an alternative sales market is found, it will only involve a few hundred or a few thousand tons. Compared to the tens of thousands of tons heading to Egypt and Algeria, this is just a drop in the ocean. In other words: the minor mood is easy to explain.

Variety shows in an adapted form
In addition, the traditional breed shows cannot be called so traditional as a result of the corona crisis. For example, just before the second lockdown, Interseed had decided to stick to the original concept, but that is now no longer possible. 'Variety shows by appointment' are now being organized at other trading houses. At Interseed they also opt for another alternative: all varieties are photographed and documented in a report. "There is no live event, but we will inform our customers about the results," explains Henk Feddes of Interseed.

Agrico is working with videos this year. "We recently launched a new website and we post videos on it in which we focus on our latest varieties. Progress is also discussed there," says Jan van Hoogen of Agrico. "In other words: all the information that we normally share physically, we now transfer online."

Uncertainty is the word in the market
All in all, it is clear that uncertainty is the most important theme in the current seed potato market. Both growers and trading companies are no longer as confident as they were a few months ago. Another factor is that product that is not sold goes to consumption for almost nothing. That is a very tough one for many. Yet there is also a bright spot: the quality of Dutch seed potatoes remains renowned and it is expected that our traditional sales markets will return to us in the future.