Analysis BB Organic
It's looking for balance on the organic market
It is still a matter of searching and exploring the organic markets for potatoes, onions and carrots. The Netherlands is largely dependent on exports. Countries such as Germany and Belgium have sufficient supply of their own and are still limited on the market.
Farmers see that the yields of potatoes and onions are disappointing and are therefore counting on high prices. Traders are reaching the limits of what retail is willing to pay. That creates tension in the market. On the one hand, it is important to keep the farmer satisfied, in order to be assured of the product in the future as well. On the other hand, that product must be able to be sold and traders want to prevent buyers from going shopping and not coming back.
Lots of onion sets
The onion market is still dominated by onion sets. There are still plenty of good onions, but there are also very mediocre batches. The quality is certainly a problem with the onion sets that are still on the land. The time window in which onion sets have to be sold is small. Growers who have not arranged sales in time, in particular, find it difficult or impossible to lose the onion sets - especially those with a quality problem.
There is not much trade in seed onions. The land supply from growers without or with insufficient space in their own storage is starting to dry up. Due to the wide range of onion sets, there is little demand for seed onions from storage. The DCA Indication Price this week is €35 per 100 kilos. The bottom of the quote is at €32 and the top at €38 per 100 kilos.
Division in the potato market
The organic potato market has 2 faces. The supply consists largely of potatoes that have something wrong with them. The price for those potatoes is under considerable pressure and traders cite prices of around €50 per 100 kilos and these often go to industry.
Good potatoes are only offered to a limited extent. Growers have confidence in the market and prefer to drive the potatoes in with the expectation that the price will rise further during the season. Some growers do the math and come to the conclusion that there is a good margin at the current prices, and already sell a (small) part of the harvest to spread the risk and get some money in the bank. The bandwidth of the DCA Indication Price has become even wider. The bottom is at €60 per 100 kilos and the top at €80 per 100 kilos.
Too good year for carrot
The good growing season for carrots causes problems with sales. In contrast to the potatoes and onions, the yields are good, also in the German market, which is important for biologically. The quality is generally good, although there are occasional batches with spots. Carrots that have been standing too long will grow out of size and must be sold through other channels. The DCA Indication Price for carrots this week amounts to €21 per 100 kilos. The prices are between €19 and €23 per 100 kilos.
Jurphaas Lugtenburg
© DCA Market Intelligence. This market information is subject to copyright. It is not permitted to reproduce, distribute, disseminate or make the content available to third parties for compensation, in any form, without the express written permission of DCA Market Intelligence.
