Analysis BB Organic
Difficult export market for organic products
The trade in organic potatoes, carrots and onions is tame. Important export destinations are still limited to the market and farmers are reluctant to offer. What does that mean for the prices?
Free trade has an important function to fill gaps. Several traders are noticing that those gaps are not really closing yet, now that the harvest in Northwestern Europe is going reasonably well. If the weather turns or the harvest is over, that can change quickly.
The trend towards locally produced food is also impacting the market. If customers in Belgium, Germany or France have the choice between a local or Dutch product, they opt for local. This is even more important for the socially conscious consumer of organic products than in the conventional market. For the Netherlands - where we are largely dependent on exports - this development is unfavorable.
Peen is difficult to walk away
The carrot trade is difficult. The (European) demand for carrots is fairly normal compared to recent years, while there is a large supply of carrots, mainly due to good hectare yields. The earliest carrot has now been removed from the market, it has become too coarse or, for example, is suffering from cracks. But the mid-early varieties are still holding up well. Size selection and quality remain well within the standards and that now ensures a lot of supply on the market. Spoolers and traders find it difficult to get rid of the large quantities hanging above the market.
The DCA Indication Price has dropped slightly and amounts to an average of €19 per 100 kilos. The bandwidth is between €18 and €20 per 100 kilos. Some of the good carrots for the rinse are also sold through the industry.
Large spread in organic potatoes
The organic potato market is currently characterized by major differences. Both in yield, quality and price. The DCA Indication Price for good potatoes therefore ranges from €48 to €70 per 100 kilos. The lower end of the market is formed by varieties that are less in demand because of, for example, flesh color or taste, but from which kilos have been harvested. The higher end are the more popular varieties where the yield is disappointing in several cases. What also plays a very important role is whether the offered lot just fits for trade. A job of 15 tons is in several cases easier to sell from a few loads full.
Little trade in onions
Seed onions are not traded much at the moment. Processors can largely still move forward with onion sets. The yield of the seed onions is disappointing on average, but the quality as it looks now is reasonable to good. The DCA Indication price for seed onions from the field remains the same as the previous one at €35 per 100 kilos. Prices range from €32 to €38 per 100 kilos. Prices for seed onions dry from the shed are around €40 per 100 kilos.
A clear explanation of these indicative prices can be found here: the organic quotations of DCA-Markets
Jurphaas Lugtenburg
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