While Western European potato prices have recently fallen sharply, they are still quite stable in Poland. Although there is some pressure due to an increasing harvest, the consumer potato price is still record high.
It is already clear that the Polish potato harvest will not be a great one. This is partly due to a significant shrinkage of the area. With 12% fewer potatoes, Poland is an exception in Europe. It is not the first time that cultivation has slowed down considerably. Arable farmers have to contend with low yields and disappointing financial results year after year. A better-yielding grain and beet cultivation is then attractive. Especially among the large professional growers.
With this market movement, Poland is unique in Europe. In other countries, it is the big players who continue and it is the smaller companies that stop this expensive cultivation.
Small harvest coming
The Polish growing season was broadly similar to that elsewhere in Europe, with the caveat that on average planting could be done a little earlier. That does depend on the region. Planting was also carried out in southwestern Poland at the beginning of May. Then it was dry for a long time. Last year, growers in the country harvested more than 6 million tons of potatoes, but the volume is expected to be even lower this year. This could break the record low of 5,74 million tons from 2013.
It is therefore not surprising that prices in the country remain at a decent level by Polish standards. For sorted and bagged table potatoes, the price level at the beginning of September is €24 to €32 per 100 kilos in wholesale. The grower prices are therefore slightly lower. The Polish news site Fresh-Market.pl writes about this. That doesn't seem like much, but it is a record for the Polish potato trade. A year ago the price level was still €19 per 100 kilos.
Price level falling
Prices started the season at €35 and have been slowly decreasing since the beginning of August. This is common with an increasing potato harvest. Precisely because the price level has been falling since the end of August, growers are offering more table potatoes, causing the price level to drop even further. The market has not reached a bottom for the time being.
Given the small potato harvest, the price level is expected to remain above average this season. One factor can change that and that is the import of potatoes. The Poles especially fear a large volume of potatoes coming from Ukraine. In this country, storage options are even more limited than in Poland, creating a compelling supply in the harvest season of cheap Ukrainian potatoes. This supply is at its greatest, especially at the beginning of winter, when it starts to freeze.
Less potato consumption in Ukraine
Potato prices in Ukraine are currently €15 to €23, which means they are considerably below the Polish price level. The chance of cheap imported potatoes in the short term is real. The potato area in Ukraine has decreased by 12% this year. Mainly due to the consequences of the war in the country. More than six million residents have fled the country since the war early last year. This is also felt in potato consumption. The most important export country for Ukrainians is Moldova. Export to the European Union is difficult due to quarantine restrictions.