A shortage of potatoes is coming

It remains to be seen to what extent the steps will be taken. The fact is that the market started moving earlier than expected in the first weeks of 2022. In previous years there was generally one in January slow Start. There is normally sufficient supply of contract potatoes and potatoes that can be delivered better due to decreasing storage life. In a market with potential, the next step will not be taken until mid-February.

In addition to the position of the buyers, the further development of the market also depended on the spring. The fact that the market is already starting to move provides a different perspective. The supply of Fontane, for example, at the average current stock exchange quotations of €15 per 100 kilos would be limited. Growers seem to be emphatically waiting for a higher price. A next step for Fontane could be €17, according to insiders. However, growers who go for the next 'round' (read: the long-term keeper) go for the 'two' (read: €20). Time will tell whether the potato market can make that move.

Buying additional delivery kilos for an acceptable price requires a lot of tact
Potato processing is running at full speed. For example, many potatoes are brought from Belgium, but contracts are also brought forward to meet obligations. These are difficult times for those who have not adequately covered their position. Buying additional kilos for acceptable prices requires a lot of tact, but now that the genie is increasingly escaping the bottle, many means seem permissible. The demand for fries is high, the processing capacity is now greater than the supply of potatoes and the cold stores are empty.

While this has already become clear in other parts of the world such as America, in Europe the current purchasing system still responds fairly mildly to the market. It therefore seems only a matter of time before the market takes a big leap upwards. Export demand is seen as a spoilsport by the processors. Switzerland, Eastern Europe, but also Southern Europe clearly pay much more for potatoes. And the fact that these are on the market so early indicates that it could be very hot in the next three months.

In the potato segment for fast food, especially Innovator, the tension in the market is even greater. Figures from Burger King and McDonald's, for example, indicate that corona has not done any harm to the companies and that the demand for potato end products is unprecedentedly high. The tension in the market is further increased because there is also a demand for Innovator for export to Switzerland, among others, where there is also a lot of interest in the Agria variety.