After the difficult seasons of 2019 and 2020, potato trader Weuthen looks positively to the future. The supply situation is currently in balance and the harvest is going according to plan so far.
Ferdi Buffen said this during his speech at the Weuthen Kartoffeltag today (Thursday, August 26). The company expects that the daily prices for French fries potatoes will be above the contract price level in the coming period.
The growth of the potatoes remains below average, according to the results of the trial harvesting. Many crops are already starting to ripen and the harvest yield will only be average, according to Weuthen. The current growing conditions can still cause problems for the main harvest. The company estimates the harvest volume for the EU 5 to be between 26 and 28 million tons. Weuthen expects prices for chip potatoes between €2022 and €17 per 20 kilos in spring 100. The current futures market price reflects that expectation. Fast-food varieties, for example Innovator, will probably pay higher prices.
Area shrunk, but processing capacity expanded
The potato area in the EU 4 has shrunk by approximately 3% to 5% due to uncertainty among growers about the market prospects for the 2021 season and calls for area reduction from NEPG and other organizations. The processing industry has already expanded production capacity considerably in recent years and will expand even further in the coming years.
“These lines want to be fed with raw material,” says Buffen. "Increasing cultivation costs and higher prices for other agricultural raw materials must be passed on in the income of potato growers in the future. We can only secure the raw material in the future with attractive conditions. The most expensive raw material is not a raw material."
The text of Ferdi Buffen's speech is here to find.