The export of Dutch seed potatoes is going relatively well, according to various trading houses. Of course, this sector cannot escape the consequences of the corona crisis either. Trading is going better than most traders expected at the start of this delivery season. However, not every destination is exporting rosy. Where is the hard work for trading houses?
Exports to destinations in America, Asia and Africa are now almost completely over. Some traders still have some consignments for a distant destination, but are still waiting for payment, for example. The NAO figures show that the export of seed potatoes to distant destinations has gone reasonably well. The counter stands at 1 tons until February 251.270. A year earlier that was 270.847 tons.
Killjoy Algeria
Algeria has been a major export breaker. The country is very dependent on oil exports. Oil accounts for more than 93% of the country's total exports. That sector has been hit hard by the corona crisis and has had major consequences for the Algerian economy. To limit the outflow of hard currency and protect its own economy, the Algerian government has decided to introduce import duties and restrictions. This year it was therefore difficult to ship seed potatoes.
In 2020, more than 1 tons went to Algeria until February 75.000. This year the counter remained at approximately 42.000 tons. Finding another destination for this seed potato proved difficult. Other important African destinations, such as Egypt and Morocco, have purchased a quantity of seed potatoes that is comparable to a year earlier.
Windfall in Asia
It is not all doom and gloom in the seed potato sector. Prices for consumption potatoes in India were very good last year. The consumer price of potatoes in October 2020 was almost double that of 2019. Dutch seed potato exporters did not directly benefit from this.
It has created additional demand for seed potatoes in the neighboring countries Bangladesh and Pakistan. They purchased more than 12.000 tons more than a year earlier. Demand from the Middle East was also better than in 2020. There are shifts between the different countries. Major buyers such as Iraq, Israel and Saudi Arabia purchased more seed potatoes than a year earlier.
Price under pressure
Most trading houses expect prices for seed potato growers to be significantly lower this year. The price of the large export variety Spunta is under pressure due to the wide supply.
HZPC announced a forecast price that is 20% lower than the payment price for 2019. Prices at other trading houses are also expected to be on this line. Several traders point out that the seed potato sector has had a number of good years. Given the current market conditions, most traders still expect to achieve a payout price around the cost price of the growers. This certainly isn't a year to write home about, but the damage remains somewhat limited.