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Inside Potatoes

Physical market price significantly higher than at our neighbours

23 January 2020 - 2 comments

The physical market price for potatoes in the Netherlands is head and shoulders above the average price in neighboring countries. The price is no less than 10% higher.

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This can be deduced from the average rankings of the countries France, Belgium, the Netherlands and Germany. These quotes are used to compile the weekly cash settlement (CS). On Thursday, January 23, the CS was set at €15,10, which is €0,20 higher than a week earlier.

The contribution from Germany (€14,73), Belgium (€14,51) and France (€14,72) has remained virtually the same, while that from the Netherlands amounts to €16,24. The Dutch contribution is no less than 10% higher than in the other countries used for the CS.

Especially white-fleshed varieties
The reason for the relatively large price difference can be explained. PotatoNL is used for the Dutch input required. The price is based on the average of the bottom of the category 1 quotation and the top of the category 2 quotation.

It is the category 2 listing in particular that often causes the peak of all listings in Europe. Especially the more white-fleshed varieties, such as Innovator, are in demand in the current market and this is reflected in the top of the category 2 listing.

Other purposes
The description of the PotatoNL 2019-2020 protocol states that category 2 are fries-suitable potatoes that are used for other purposes, such as small French fries producers, small-scale peeling plants and export for French fries processing in other countries. These therefore do not fall under category 1.

Such a method of recording is not so extensive in other countries that provide input from the CS. This is clearly reflected in the final average price level (cash settlement).

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