Now that the supply of potatoes for processing from the field is becoming fully available, the scale and impact of the crisis on the potato market are truly becoming clear. Belgian company Viaverda sent a signal earlier this week by not setting a quotation due to a lack of transactions. Compatriot Belgapom had to reveal its true colors today (Friday, August 15th) by not being able to establish a quotation. German company Reka is also not listing this week, underscoring that the free potato market has effectively been completely broken down.
This week's drought, combined with high temperatures, has caused crops to wear out quickly. This could potentially lead to reduced regrowth of early and mid-early varieties. The potato harvest is starting early this season. The Innovator variety, in particular, will be ready for harvest within 2 to 3 weeks, largely due to the early spring.
De trial harvesting also give the impression that the yield 3 to 4 weeks before is different years. With little regrowth, the total harvest is expected to be slightly above the 5-year average. The total potato harvest may therefore be smaller than initially assumed.
Sentiment
Yet, this seems to have little impact on sentiment and price trends. The size of the EU-5 potato acreage, combined with an average yield, is resulting in negative sentiment. The substantial volume of contract potatoes held by processors and the resulting lack of demand for free-range potatoes appear to have dealt a devastating blow to the potato market. Growers with free-range potatoes are searching for buyers who are currently elusive. Belgapom is sending a clear signal today, Friday, August 15, by not issuing a quotation. In other words: "We can't have the free-range potatoes."
Hoop
In effect, the physical potato market has dropped to zero euros. Growers with free potatoes have no choice but to look for alternative sales. But even that search is far from easy, because potatoes grown on land are not popular with livestock farmersMoreover, livestock farmers currently have ample forage available. With the maize silage harvest approaching, there may be some hope, as potatoes can be ensilaged along with the harvest.
incentive
On balance, the potato market remains a deeply sad picture. Growers were initially strongly encouraged to plant more potatoes, and then it turned out there wasn't enough of a market. You can set a market price at zero, but that also means there's no market. no new question created. And that's exactly what the market is waiting for.