With the changeable weather this week, the compelling supply of early potatoes also seems to have decreased somewhat. Processors needed 4 weeks to make up for their backlog from the late start, but now seem to be getting some breathing space again.
Processing is now back in full swing after the holidays and the transition from the old to the new season. The market and the price have had to go deep, without any additional demand resulting from this. The processor with the least coverage has benefited the most from the non-functioning of the supply and demand mechanism. The French fry prices have remained reasonably stable, so processing potatoes that are well below cost and contract price gives an additional margin for the industries.
In the meantime, the greatest pressure seems to have been released. Processors are buying potatoes again and the less obvious chip varieties are also being picked up and processed. At the beginning of the week, the Belgian industry paid €14 postage paid for nice batches and the Dutch processors are also no longer shying away from a batch of potatoes of €12,50 ex-field.
No top harvest in sight
The fact that they are no longer letting potatoes go also has to do with the increasing insight into what the expectations are for the main harvest. Every week it becomes clearer that a top harvest is not going to happen. The hoped-for subsequent growth also does not seem to be happening with the current figures. This means that the potato market is heading for a volume comparable to or lower than in 2018 and 2023, with far fewer coarse potatoes available. The high number has ensured that we are dealing with fine size sortings this season. A large diversity of qualities also makes it a complicated puzzle for processors.
What is also striking is that the table and export potatoes have not really participated in the price malaise of the chips potatoes. The demand for firm skinned beautiful export potatoes is good and prices of €25 are not an exception. Also for the peeling department €22 and more is currently paid for the good varieties.
The demand for storage potatoes for chips remains at a good price level and cases for €30 plus are also the rule rather than the exception here. This can also be read from the futures market, which tends upwards at €30 rather than downwards. The market is on the eve of the main harvest and then reality comes to the surface. Then the potato market will show its true face.