After several very good years, seed potato sales are proving very slow this season. As a result, sales prices are falling below cost.
Free trade seed potatoes, in particular, are experiencing very difficult sales this season. There's more supply due to larger acreage and good yields, while demand is lower. After a promising start, prices have fallen sharply.
At the start of the marketing season, Spunta pears were still trading for €70 to €80 per 100 kilos. This start was based on the successes of previous seasons. This price level quickly proved unsustainable, and sellers were forced to lower their prices.
Growers hoped the market would bottom out at €50 per 100 kilos, and when that became unattainable, the target shifted to €40 per 100 kilos. Buyers, however, remained passive, waiting for even lower prices. And that's what happened.
This week, the price for Egypt-suitable Spunta E in size 35/55 dropped to €27 to €29 per 100 kilos. This has brought the market to a price level that no longer covers the cost price. Cost prices have risen sharply in recent years. A North Holland Spunta grower states that the cost now amounts to around €14.000 per hectare.
And despite the price reduction, trade is still not running smoothly. Sorting machines are regularly shut down because the agreed-upon payments are not received on time. The flow of cash is also more difficult. Last year, the potatoes were paid in advance without any problems. This year, they are waiting for half of the amount to be paid upfront; the rest will follow later.
It's not just Spuntas that are facing difficult sales. Other export varieties, such as Cara, are in the same boat. Prices for Cara are also being reported at around €27 to €28 per 100 kilos. Demand from countries like Egypt and Morocco is simply lower.
Désirées A 35/55 millimeters also sold for €28 per 100 kilos, according to the DCA Transaction App. Class E, but with scab scale 2.5, sold for €23 per 100 kilos, according to the app. The smaller size 28/35 millimeters sold for €50 per 100 kilos.
The more difficult sales to North Africa will naturally have a ripple effect on the rest of the seed potato trade. This may be somewhat less of a problem for some monopoly varieties if they are also consumed again, but ultimately, the entire sector will suffer from having to sell a larger production of seed potatoes in a more difficult market. Sales of French fry varieties will also be difficult, now that the French fry potato market is in crisis.