The harvest of table potatoes in Spain is getting under way in more and more growing areas. Export obligations to other European countries are being met, but it is mainly the Spanish market itself that attracts the potatoes. This also creates a strong undertone on the European potato market.
The new Spanish potato season started at a record high with €71 per 100 kilos for the first early potatoes. That price level has now fallen slightly below €70 due to a greater supply. The price level depends on the region, supply, quality and variety. Spanish growers sometimes have difficulty supplying skin-resistant potatoes, given the growing season. For free lots, people quickly pay €75 per 100 kilos, insiders say. Demand from France and Germany in particular is good.
Fits and starts
A six-week period of drought and extreme heat has caused the potato crops to ripen more quickly. As a result, the product does not enter the market evenly, but happens in fits and starts. The crops are clearly ahead of other years, insiders say. In addition to Andalusia, harvesting is now also taking place in Seville and Murcia. The majority of the potatoes remain in Spain and are destined for supermarkets there. Seville does export to Western European countries, but buyers in their own country try to get their hands on as many potatoes as possible.
After a period of frost, drought and heat made it difficult for crops to develop. Yields are one-fifth to one-third lower per hectare. This is partly offset by a significantly higher price. This always peaks at the start of the season, but it is expected that the high level can also be maintained later in the season due to tight market conditions. The price level is more than €20 above that of last year.
Take advantage of the price
There are plenty of buyers for early potatoes, according to insiders. Not everyone has been able to secure enough Egyptian or Israeli potatoes. Hopes are now pinned on Spain. Because of this demand, growers sometimes consciously choose to harvest green crops now and thus benefit from the high prices. The quality is generally quite good. Rot is not a problem this year, but insect damage sometimes is. They thrive in high temperatures.
The weather is having a major impact on the potato harvest in Spain, in addition to a shrunken area and small harvest in 2022. Never before were so few potatoes harvested last year, when extreme drought also caused major problems. The concerns of potato growers are not over yet. The tap is literally turned off by the government, making irrigation an increasingly difficult task. That has an impact on revenues. The Spanish government did announce that it would release more than €780 million in support for farmers suffering from drought. Another €1,4 billion will be invested in infrastructure to retain more water that can be used by agriculture, among other things.
Impact on the market
The situation on the Spanish potato market does not have enormous consequences for the Netherlands. However, it does ensure that the entire European table potato market is on edge. When the volume of early potatoes increases in other countries, the market will naturally cool down a bit. It's a different story for storage potatoes such as Agria. There remains strong demand for this from Southern Europe, but also Switzerland. The growing areas in the north of Spain, where the late varieties are grown, are not yet experiencing extreme drought. For now the shoe is only pinching with the early potatoes.