The problems with the quality of potatoes are not limited to Northwestern Europe. In Poland, too, arable farmers are concerned about how the main crop will come out of the ground. This is based on a capricious and extreme growing season. What does that mean for the yield?
The exact area and yield of the potato harvest in Poland are still disputed. It always proves to be extremely difficult to produce a reliable figure. Earlier this year, the total area was estimated at 322.800 hectares IHAR-PIB Institute. A decrease of 10%. Not everyone in the sector agrees. This shrinkage may be several thousand hectares smaller. This also has consequences for the estimated yield. The agricultural institute estimates this at 7,82 million tons, 7,7% below last year's level.
Rotten potatoes
In addition to a smaller harvest, there are mainly concerns about quality. A wet summer resulted in a high infestation by phytophthora. In addition, the Colorado potato beetle has also caused a lot of damage. A cold spring has also caused scabies, it is said. Growth cracks and deformed potatoes are the result of rainfall that followed a dry period. It became so wet that rot also occurs. Especially in low places in the plot. Rot is also caused by tuber phytophthora, which in turn causes storage problems.
As a result of these concerns, prices for table potatoes remain at a stable level. Normally the market price drops significantly when the (main) harvest starts. Growers who have little or no storage options then have to get rid of their crops. Growers are offered between 700 and 800 złoty per tonne. This translates to €152 to €173, where the ex-land price normally drops to €65 per tonne in September.
Difficult starch potato cultivation
The Polish starch industry is also having a hard time. The prices here are at a lower level than for table potatoes, fries and potato chips. The IHAR-PIB therefore expects a shift in this segment. Growers are paid €65 per tonne by the cooperative processors. To achieve this, the potatoes must contain at least 18% starch and a hectare yield of 35 tons must be achieved. In addition, there is support from the CAP. Growers receive €280 to €300 per hectare for cultivation.
What doesn't help is that Polish starch producers still have last year's stocks to sell. They are therefore cautious this season because the market for their starch products has still not returned to normal due to the coronavirus. This is special because in Western Europe factories have been able to benefit from an improved market.
Export to Ukraine
An opportunity may lie in exports to and cooperation with Ukraine. The starch industry in the west of that country is expanding and growers in both countries are working more closely together in potato cultivation. Last season, 86.500 tons of potatoes were exported by Poland to their eastern neighbors. This mainly concerns table potatoes. The country hopes to be able to export more in the coming years. That mainly depends on the Ukrainian harvest. Last year it turned out to be small due to extreme drought.
Ukraine has a potato area of 1,4 million hectares. This makes it one of the largest potato countries in the world. Less than 2% of this area is cultivated by professional companies (67.000 hectares). The rest is grown by private individuals.
What about the industry? In the Southwest, McCain has kept chip potato prices and contracts stable this season. In the north (Farm Frites/Aviko Potato) and southeast (Fritar) less acreage has been used. This summer, Farm Frites Poland SA announced expand in processing. It will be 2023 before the new lines start operating.
New chip factory
The chips sector is becoming increasingly important in Poland. This spring reported Boerenbusiness the rumor that Pepsico is going to build a new factory in southeastern Poland. This became official at the end of August announced by Pepsico. However, the completely new factory will not be located in the southeast, but in the southwest, in the town of Święte. That is a stone's throw from Wrocław. This involves an investment of 1 billion złoty, equivalent to €22 million. The factory will be built in phases and should be fully operational in 2025.
Chips are mainly produced for Lay's and Doritos, production of which should start in 2023. Due to its strategic location, the production facility can export chips to Germany, the Czech Republic, Slovakia and Hungary. The factory has a processing capacity of 60.000 tons of potatoes. This amounts to a required area of approximately 1.350 hectares.