As is often the case, Belgium is taking the lead in the potato market. It was in the air that prices would take a step before too long. It is the Belgians who determine the tone of the music and the Dutch processors are forced to play along.
On Friday, December 16, the 'old' ex-land price level of €25 per 100 kilos for Fontane and Challenger was put back on Belgapom's plate. Innovator recorded €26, which is a bit on the meager side as processors in the Netherlands are already paying up to €27 ex-grower for delivery this year. It was only a matter of time that market prices would rise. The supply of lower quality potatoes, which were somewhat busy in the market after the farm period, is clearly drying up. Growers with excellent potatoes in storage were therefore not really planning to offer for less than €25. In that sense, it is logical that Belgium is taking a step up.
Followers
The expectation is that the market in the Netherlands will follow, with an emphasis on following as Dutch processors are never in such a hurry, because in many cases it concerns the settlement of co-delivered potatoes. This method of settlement has become more of a subject of discussion as trade has disappeared, as is also evident from what is frequently communicated by POC, because the question is what the settlement price is based on without an actual market. In that sense, the more active role of Belgian processors in the free market is positive for the entire market in the EU-4 countries, especially in a season like the current one. The German REKA quotation actually followed immediately by trading €23,50 higher for Fontane on Friday afternoon at €1,50. Innovator at €26 and Agria at €25 remained unchanged.
What next in the coming weeks? The fact that the market is picking up speed just before the turn of the year is good news. Given the demand for fries and therefore raw materials, it is more than likely that the market can rise further in the coming months. Various insiders believe that with the release of the contacts for the 2023/24 season, especially from the processors operating in the Netherlands, the mood towards the growers can be further improved so that an average market price of €30 per 100 kilos will be achieved within the next three months. need not be excluded. Apart from the necessary positive undertone towards the 2023 harvest year, it is expected that the market price will rise to a higher price level due to a positive balance of demand versus supply.