Nok nok who is knocking on the door of the potato shed... It seems like the beginning of a fairy tale and somewhere it is. Because just think, when in recent history has € 40 been paid when it comes to purchasing chips for potatoes. And that while the month of May has yet to start!
It is an unprecedented purchasing offensive that has started in recent days, mainly in the south-west of the Netherlands and even more specifically in Zeeuws-Vlaanderen. Growers sometimes had several interested parties 'knocking' on the (potato barn) door in one day. Without any problems, €40 per 100 kilos was paid for varieties such as Fontane, Ramos and Challenger for loading within a week. The price jump was also immediately reflected in the Belgapom quotation of Friday April 28 (€40 for Fontane and Challenger voting price-keeping). But also striking was the German REKA, which normally quotes somewhat conservatively and rather follows, which put up to €28 for Innovator on Friday, April 41; bottom was €39,50 for Fontane and Challenger. The Dutch PotatoNL listing will of course follow on Monday, but the Dutch industry is certainly not in as much haste as fellow Belgian chip processors, which is partly due to the difference in purchasing structure. In the Netherlands, for example, many potatoes are paid for on the basis of a co-delivery contract, while Belgians have to rely much more on the now shriveled free market.
What's the limit?
This immediately raises the question of how far the average physical market price of French fries potatoes can still rise. For example, for Agria with an export destination, for which up to €42 per 100 kilos is already paid, €45 or even €50 could be feasible, partly and especially due to the demand from Southern Europe. Whether, for example, €45 will also be paid for fries potatoes? Well, who knows, but we'll know in the coming weeks. In any case, the June 2023 futures market quotation makes a start by closing on Friday, April 28, at €41,50.