The PotatoNL makes a big jump in the quotation for Monday 17 April. The category 1 shows a considerably higher price at the top, but it is mainly the category 2 that is going up. Processors pay a decent price for premium varieties such as Agria. Both in the immediate and the longer term.
PotatoNL keeps the bottom of category 1 (chips suitable for NL/BE/DU) the same at €30 per 100 kilos, but increases at the top to €36,50. That was €32 a week ago. Category 2 ranges from €32 to even €39, mainly due to the contribution of the Agria variety. That variety now shows a considerable range of €30 to €39. These amounts are paid for consignments kept in boxes. They not only go for fries but also for peeling.
Price movement
Discussion leader of the listing committee Watze van der Zee agrees that the bandwidth is large, but "it does reflect the current market," he explains. "While compiling the previous quotation, it was already noticeable that the price was going to rise further. I did not expect it to happen so quickly. The April contract on the potato futures market ends on Thursday, April 20. Once it has been settled, the market can probably rise further. We already see that happening."
The discussion leader indicated that it was not difficult to get the various parties within the listing committee to work together. The fact that trade and processing have agreed without much discussion suggests that more price increases are in the offing. That's not strange when you take a look at the calendar. It is remarkable that there are barely a potato in the ground in the second half of April. Even of the early varieties, very few have been planted. This has an irrevocable impact on the connection between the old and new harvest. That will definitely be later.
Buy in the future
Reason for processors in the Netherlands and Belgium to also do a lot of business in the long term. This is reflected in the contribution to the DCA PAT Index. Of the 27 transactions entered by the four Dutch processors, ten are for forward delivery. Especially May and June. It is striking that a maximum of €35 is paid for this, while in the current market this is also paid directly.
By making price agreements in the long term, purchase agreements fall outside the PotatoNL protocol. This states that the potatoes must be collected within one month of purchase. It is also known that sometimes transactions are concluded that are not reported at the buyer's request. Van der Zee is aware of the practices, but says that as a discussion leader he can do little about it. "There are all kinds of ways to influence the listing. That can make you angry - and we do - but it is up to all parties to deal with this properly."
Further increase
Van der Zee is positive about the potato market, which is only now really taking off after an initial step in January. "When you look at the pace of processing in the Netherlands and Belgium - coupled with the tight potato supplies - it is inevitable that more price increases are in the pipeline. Planting has yet to really start, it is cold and the Ground conditions are not ideal."