The price development in the potato market seems to be getting new impulses. Now that the main harvest has started in many growing areas, a considerable number of growers are still struggling with the sale of the mid-early contract potatoes.
As mentioned, the potatoes from the main harvest are delivered from the field and mainly driven into storage. Drought plays a role in this. The first growers on the heavier soils have now started irrigating the plots before harvesting. Various sources (growers, traders and processors) have now indicated that the average hectare yield is not that bad.
The growth has apparently been disappointing. The 5-year average is therefore not achieved. The harvest differs per hectare and the quality also varies per variety. The most important varieties seem to have their own dynamics in terms of market price development.
Fountains
The Fontane variety is by far the largest chip variety in the EU-4 countries (the Netherlands, Germany, Belgium and France). The hectare yield in August seemed to be heading towards a 5-year average, with even a plus in Belgium and France. It is now clear that due to the moderate subsequent growth, the multi-year average in the EU-4 countries will not be achieved. In addition, the worrying quality problems in the form of hollow play a major role. The problems are particularly significant among the major rivers in the Netherlands and further south (Belgium and France). It is estimated that of the total Fontane area in the EU-4, 5% to 20% of the tubers are hollow or have a star in the flesh. The big question is how to deal with the quality situation. After all, problem batches can never all be processed on land. The question is how things will go in storage. It is clear that processors have to solve some technical problems in order to process batches containing hol. This will inevitably be at the expense of returns.
Fontane's market prices are currently between €12 and €14 per 100 kg ex land, these are mainly co-delivered kilos. The bottom now seems to have been seen in the Fontane market. Belgian processors are carefully trying to pick up some extra Fontane in the Netherlands through trade. There are also buyers in the market who are looking for Fontane without quality problems to fill the storage.
Innovator
This potato variety once again lives up to its name of 'juffertje'. The average hectare yields are generally very disappointing. Also considering the Boerenbusiness Crop tour, a number of plots do not even reach the yield of 2018! The cold spring and the otherwise wet and cool growing season have not done the variety any good. The quality certainly seems good compared to Fontane, but the length desired for fast food is lacking in many cases. The cultivation of the variety has decreased significantly in the past year, because growers are dissatisfied with the financial returns. There is currently a lot of interest in the market for free Innovators. The co-delivered kilos are charged by processors at a maximum of €13,50 per 100 kg. Last week (week 38) €15 was paid ex-land in the open market. For later delivery (March/April 2022) €22 would have been incurred.
Sour
Agria does not achieve the target kilos this year and, like Fontane (same blood group), also has serious quality problems, such as hollow but also rotten. Agria is also known for not always being easy to store. Storing them in boxes seems best to control the 'leaky' potatoes. Agria is an important variety for the sale of fresh fries, which also applies to peelers. It is expected that the supply of good quality Agria will be limited later in the season. Contrast this with the export potential, and the market can show good prices. Take Switzerland, for example, which already appears to be on the market due to a disappointing harvest in that country. Processors currently pay a maximum of €14,00 per 100 kg for co-delivered kilos. In the open market, prices for Agria are now rising to €17 to €20 per 100 kg, depending on the quality (read: storability).
Challenger
Challenger is the white raven in potato cultivation in the EU-4. The variety has done very well in terms of growth this season and has therefore become the top among the chip varieties. Good yield, good quality and size are currently putting this variety back on the map. In recent years, the variety has decreased in area, which has benefited Fontane. Since Challenger dangled at the bottom of the market in price formation, the variety had to lose out to the kilo-popping Fontane. This year the roles have been reversed. Currently, only the processors are customers and the potatoes are charged at €12 to €13 per 100 kg.