While one event after another is cancelled, potato trade fair Interpom Primeurs in Kortrijk went ahead. This is traditionally the time to announce the first contract prices for the new 2022 harvest year. That has not changed either. What do the prices do?
While the Agribex mechanization show was canceled at the last minute, Interpom Primeurs went ahead anyway. Many potato industry insiders have longed for a trade fair again, although there are also mixed feelings. Ultimately, the coming week will show whether it was a wise decision.
Clarebout starts
It is mainly the large Belgian potato processor Clarebout that Interpom always uses as a springboard to announce its contract prices for the new year. Last year it was Agristo who was the first to kick off, but this year Clarebout is again taking the bull by the horns. Not an easy task, given the tensions this season.
For the time being, it concerns the early potato contracts, with the delivery period starting in week 29 from land. That is the week of July 18, 2022. The delivery period runs until week 35. That is the end of August. A period for the Premiere segment and other varieties such as Amora and Anosta. Clarebout is reported to increase prices by €1,50 to €2,00 per 100 kilos, depending on the delivery period. The season starts with a price of €17,00 per 100 kilos on week 29, after which this level gradually decreases until week 35.
This is in line with expectations within the sector. Whether an increase of €3,00 per 100 kilos is feasible for the storage potatoes – which some parties are pushing for – remains to be seen.
Prelude to main harvest?
Last season Clarebout offered a price of €10,00 per 100kg for Fontane and €12,50 for Innovator for ex-land delivery of the main crop. We still have to wait until these contracts come out, but if we continue the current increases, you will come to €12,50 to €14,00. Last season, prices fell by €0,5 to €1,00 per 100 kilos.
More processors are expected to release their contract prices for the early potatoes this week and next week. What is clear is that the focus is on getting potatoes early in order to bridge the gap with the main harvest. Last season it was possible to continue playing the old one for a long time. Because parties are now moving forward achieved, there may be a shortage in the medium term. If that gap is filled again with the late potatoes, the situation will only shift further.
Sparing with potatoes
It is not without reason that factories are already on the market to buy free potatoes. That became clear in the Belgian stock figures, which show that more free potatoes have been processed. The contracted raw material is used sparingly.
Is the corona pandemic not taken into account at all? To a certain extent yes, but foreseeing is also impossible for a processor. The development of chips sales is reassuring. Nevertheless, the arrival of a new corona mutation does create tension under the skin. Measures are being tightened up further and freely celebrating the holidays together is not possible. This is detrimental to French fries consumption. Factories also fear a general lockdown in Germany, which could affect consumption figures considerably. Plans for the 2020/23 season are being made, but with a blow to the arm and sometimes holding your breath.