Spain wants to open the tourism sector as soon as possible. That is not only good news for holidaymakers, but also for the Dutch potato market. They can benefit from extra demand for (fresh) chips.
There was particular uncertainty among Spanish arable farmers about the further course of the corona pandemic. The market for table potatoes has held up well, but the French fries market in Spain - as in the rest of Europe - collapsed in the past year. For the sales of French fries potatoes, Spanish growers are largely dependent on the local demand for French fries.
Fewer potatoes planted
There was still a lot of uncertainty about the reopening of the tourism sector in March, towards the end of the Spanish planting season. According to insiders in the seed potato world, Spanish potato growers have therefore planted significantly fewer French fries potatoes. This is also reflected in Dutch seed potato exports to Spain.
Until April 1, this was 7% behind last year. According to sources, less Agria seed potatoes were exported. With the reopening of the tourist sector, the demand for fries can logically also increase. And Agria is in demand especially for fresh fries in the catering industry.
The fact that there is a demand for Dutch potatoes in Spain is also evident from the most current export figures from the Dutch Potato Organization (NAO). In March 2021, 1.942 tons were exported compared to 875 tons in March 2020. The Agria listing on the PotatoNL also took a step up this week from €7,75 on April 19 to €9,50 on April 26. However, some traders are already talking about prices approaching €15,00 per 100 kg for delivery at the beginning of May for 'excellent' quality Agria.
No catering closure
The limited closure of catering establishments in Spain may play an important role in the relatively high demand for potatoes. The terraces of many Spanish cafes and restaurants have been well filled in recent months. With a share of approximately 12% of the gross national product, Spain is very dependent on tourism.
The country therefore has an interest in opening the tourism sector as quickly as possible. Earlier this week, Spanish State Secretary for Tourism Fernando Valdés announced that the country will participate in a trial in May with the European corona passport, a digital proof that records vaccination, negative test or recovery from the disease. Spain wants to receive tourists again from June.
If Spanish ambitions are a harbinger of further relaxation of corona restrictions in Europe, there may still be a demand for old potatoes at the tail end of the season. There are not many free potatoes left. Some potato varieties may therefore experience a significant price jump.