Potato prices are recorded, but there is no market

In Germany (REKA), Belgium (Belgapom and Viaverda) and France (RNM) for example, €12,50 has been put on the plate for weeks for bulk fries varieties such as Fontane. In the Netherlands, there is still no clear picture to be given on the basis of quotations. The current situation is special. Processors do not really have to actively enter the market, since there is sufficient supply due to the harvest and the flow of potatoes from the land. If you wanted to buy actively, there are not many potatoes available. The result is that there are hardly any transactions and quotations that therefore seem to be based on thin air.

Search for free potatoes
In the market, but not visible in the quotations, after a long search Fontane is bought for €14 to €15 per 100 kilos. The same applies to Innovator, which is now also being requested from Switzerland. For a free storable batch of good quality Innovator, but also Fontane - depending on where they have to be loaded - up to €20 per 100 kilos is paid. This can be seen in the REKA quotation where €20 is put on the board for Innovator.

Not enough free potatoes
The lack of freely tradable potatoes is increasingly disrupting the potato market. This growing season in particular, the yields per hectare in large parts of the Netherlands and Belgium (15% below the multi-year average) are not good, which is why you might expect more mood in the price trend. Growers who are faced with a disappointing harvest first comply with the contractual agreements and then have nothing to sell freely. A potential buyer, other than the regular buyer, sees hardly any available lots. If there is hardly anything for sale, no business is done and no price is shown on the free market. As a result, the quotations on which the potatoes are delivered to the processors, such as - that of Fontane - remain at €12,50 for weeks to come.

Big difference within EU-4
It also seems as if a parallel market is developing alongside the French fry potato flows. Everything that does not go to processors is at least 20% higher in price. The fact that it concerns small quantities does not detract from these reference points. What is also noticeable are farmers who are buyers of potatoes to fill their barns. And it is precisely then that they notice that there is nothing for sale. This creates a special situation for processors. The Netherlands and Belgium have (too) few potatoes and due to the high contract volumes often few or no free potatoes. Where free potatoes are for sale, it is in Germany and France. There are (excess) kilos available there. Since the market there is weak, growers give them away at quoted prices.

Growers take action
In many cases, the finger is pointed at the processors, but ultimately it is also the growers themselves who have to ensure the sale of the products and thus a good price setting (read: quotations). It seems that as the contract price makes big leaps, the grower is fine with it. As if what happens in the daily market is no longer of much importance. The years when it meant little in terms of price are quickly forgotten, in the assumption that these years belong to the past.

Without taking an overly negative approach, with a further expansion of the area in the EU-4 countries, supplemented with Poland, and a normal growing season, supplemented with a somewhat declining chip sales (as suggested in the sector), the market could show a completely different face. What the effect would be on the development of contract prices is easy to guess. In such a market situation, there would immediately be a call for better market operation. Whether that would (re)occur is the question.