There is a situation in the potato market that has never been seen before. The difference between the bottom and the top of the market is very big. That it is half the difference is unique with these kinds of prices.
Belgapom quoted €13 per 15 kilos for Fontane on Friday 100 December. A day earlier, a Dutch processor placed a tender on the market with, among other things, €30 for Innovator for delivery in December. This price difference is unprecedented, especially considering that both varieties are used to produce fries. Of course, any price difference can be explained. The supply of freely tradable Innovator of good quality is not large compared to Fontane (where quality is often an issue).
Another factor is that the sales of the end product for the higher segment for which Innovator is used are going well. This is in contrast to the sales in the bulk segment in which Fontane finds its way. The cost price of Innovator is also at a higher level compared to other varieties such as Fontane in particular. So in that sense Innovator is also paid better in previous years, but the current price difference is unprecedented!
Difference in practice is less significant
Comparing the current Innovator price and the Belgapom quotation for Fontane and Challenger seems to be taking things to extremes. However, Viaverde quoted Fontane on Tuesday 8 December at €15 to €20, with the comment: 'the basic price for processing is usually €15', a nice no-brainer later in the week for Belgapom quotations. A real current market price for Fontane with a reasonable to desirable quality would be €18 per 100 kilos (source: Transaction App Friday 13 December) and €20 (source: the same tender from the Dutch processor mentioned earlier).
That the market feels more than 'price-holding' (rather 'fixed') with the holidays approaching is also evident from the futures market quotation of the April 2025 contract, which after a dip at the end of November (€27,50) has risen again to almost a closing price of €29 on Friday 13 December. The positive price development is further supported by the other bids in the tender of the aforementioned Dutch processor. As mentioned, €30 is bid in the tender for Innovator delivery December, increasing from €32,50 in January, €35,00 in February to even €37,50 in March. For Agria for regular French fry processing, the bid for both delivery in December and January is €27,50, far behind is the bid in the tender of Fontane at €20 delivery December and January, increasing to €22,50 delivery February.