The potato market is slowly but surely moving. To some extent, that's quite remarkable. We have just had a period of frost, during which there is usually some extra supply of potatoes from sheds that are not frost-proof, and with a view to the Christmas holidays, processors are usually not too keen on the market for potatoes either.
The PotatoNL introduced a small price increase at the beginning of this week. The Belgian PCA/Fiwap, the German REKA and French RNM listings followed this example. Belgapom remained unchanged today after the increase last week, but does not count for the calculation of the Cash Settlement (CS) of week 51 (but for week 52). The CS (the average of potato prices in the EU-4) increased by €1,80 to €25,20 per 100 kilos. A rising price in this generally calm period for trade could be a sign that there is trouble beneath the surface in the potato world.
The French growers' association UNTP published the yield figures for France yesterday. UNTP speaks of the smallest harvest of storage potatoes in 25 years. French farmers have harvested an average of 39,2 tons per hectare. Highlights include Brittany and Rhône-Alpes, where yields have remained well below 25 tons. In the north in the Champagne-Ardenne region, the highest average yields in France were achieved with 49,5 tons per hectare. The total French potato yield, at more than 6 million tons, is 12,2% lower than last year.
Clean market with potential
A disappointing yield in France is certainly not the only cause for the cautiously upward movement on the potato market. The fact that the frost period has not caused a dip in the quotations is, according to some insiders, a sign that the 'junk' has been removed from the market. The processors seem to have a fairly good idea of what is located, of what quality, where and have already highlighted the doubtful parties. In any case, the market is heading into the new year on a clean note.
The fact that buyers are now adjusting prices indicates that there are either fewer potatoes available than previously thought or that French fries production is going faster than expected or a combination of both factors. What may also play a role in the background is securing sufficient potatoes for next season. After the corona years that have been dramatic for growers, the significant increase in cost prices in potato cultivation and the availability of alternatives for potato cultivation due to high grain prices, processors have to work hard to retain growers. The unwritten rule among processors not to shoot each other's pigeons seems to be showing cracks. Several Belgian processors have already introduced a significant increase in their contract prices and the German KartoffelKaiser Weuthen did not lag behind.
In the meantime, the Dutch industry is still studiously silent. In the coming weeks, it is expected that more will become clear about how Dutch chip processors are preparing for the new potato season. The hunger for raw materials could become the common thread throughout the potato market in the coming season, which will offer prospects for the grower.