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Inside Potatoes

Will there be another buying wave of Belgian industry?

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It is becoming increasingly clear that the Belgian industry is the leader in the potato market and that the Dutch industry is reluctantly following. This has to do with the lower coverage of fixed price potatoes and the better sales of fries than with Dutch processors. The need for additional purchasing of free potatoes comes entirely from Belgium, supplemented with demand from a German trading house.

In the sales channels for pre-baked products, we distinguish 4 sales channels: export, retail (supermarket), fast food and food service. Export and retail in particular are running well and even better than in the pre-corona period. And it is precisely in those segments that Belgian processors are active.

Dutch factories report that they have no need for extra potatoes. The Dutch market does feel 'clean', due to the heavy clearing of potatoes in the period September-November. So there doesn't seem to be a compelling offer at the moment.

The Belgian industry also came more forcefully to the market today to buy extra potatoes. Now that it is clear how things will work with Brexit, there is some additional demand from England. The export of pre-fried fries also does not seem to be slowing down despite the ongoing corona crisis worldwide.

Because the supply is still not well stocked, even on the slightly higher market (€5), it seems that when the next wave of demand comes, the market will have to take another step up. The futures market remains stable around the €8 level, with turnover not being high.{{dataviewSnapshot(2_1611318191)}}

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