Growers' organization North-Western European Potato Growers (NEPG) fears that the shrinkage of the potato area in the EU-5 will not exceed 5%. That is considered insufficient to balance supply and demand for the 2020 harvest.
With stagnant sales and sufficient stock, a significant reduction in the potato area is necessary for market recovery next season. In most cases, however, this realization came too late, NEPG indicates. Plots had already been rented and prepared, seed potatoes had already been purchased or delivered and planting work had already started at the end of March.
Growing season determines
The grower organization nevertheless hopes that the potato area in the EU-5 (the Netherlands, Belgium, Germany, France and Great Britain) has decreased by 5%. But even that isn't enough. It should be noted that the growing conditions, as always, determine the final harvest yield and drought is currently a serious issue. However, the growing season has just started, so it is still far too early to draw any conclusions.
NEPG indicates that on the mainland of the EU-5, probably 2 million tons of potatoes cannot be processed. The result of a decline in demand for potato products in food service by 50 to 60%. Exports have also collapsed. So far, the processors have respected the contracts with the growers and purchased the potatoes at the contracted price. The world turned upside down, reports NEPG. 'Usually it was the grower who had to deliver his contracted quality in those years when the yields were not always sufficient to meet the contract.'
Harvest shift
Manufacturers have asked growers to store their potatoes for as long as possible. This entails more costs, but it means that these potatoes can be processed until the end of August. That is exceptionally long, says NEPG, and poses a challenge and risk for growers. Normally, processors switch to new harvest from Belgium and Germany in July. If these harvests are postponed, this will flow back into the regular harvest in October.
According to the growers' organization, this exceptional crisis shows that the processing industry as a whole will have to reconsider the organization of production and delivery in the future. The same applies to sharing risks and responsibilities.