Analysis BB Organic
Trade on the organic market is picking up cautiously
There is a lot of information about organic potatoes and onions. Growers and traders are getting used to each other's prices. As a result, trade is also gradually picking up. The organic carrot market is quite different and has been difficult until now. Will that shift now that the off-land period is coming to an end?
There is plenty of tension in the organic market for potatoes and onions. Buyers and sellers know that there is relatively little product above the market. That is an ingredient for high prices, which are also badly needed to compensate for the lower yields. But for growers with a somewhat decent harvest, there is a nice margin to be gained at the current prices. The question then is: are you satisfied with the current prices or are you betting that prices will rise further with the risk that there is not much left in the barrel?
The latter scenario is also taken seriously by various traders. Some of the consumers consciously opt for organic and are not easily deterred by expensive potatoes or onions. For example, for advertising campaigns in the supermarket, it is quite conceivable that other products will be used. If that happens a number of times, it can cost the necessary sales. That does not necessarily mean that the market is collapsing. It is more likely that the market will go out like a candle at some point.
Trade is on the rise
More trade is starting to open up on the potato market. Several growers have waited to sell in the hope that prices would rise further. But prices are relatively good, so several business owners are also starting to wonder if now isn't the time to sell at least some of what's in the shed. The trade is just trying to give the final push by adding some more to the price. The DCA Indication Price for organic potatoes is €57 to €62 per 100 kilos. Just like last week, it is the bottom where something has been added. For the sake of clarity: these are potatoes in the size between 35 mm and 65 mm. There are also buyers for good, substandard potatoes, but the prices are clearly lower.
The demand for onions is only there for good onions, but the trade is careful with that. Certainly because there are also lots available with a defect that can be sorted out well. The DCA indication price for good onions remains unchanged from last week at €48 to €52 per 100 kilos for the coarse and €45 to €50 per 100 kilos for the finer grade.
No disaster is a disaster
In contrast to potatoes and onions, carrot yields are good to very good. Harvesting many tons is often good for job satisfaction, but often less favorable for pricing. The demand for Dutch carrots is disappointing, especially because the cultivation in neighboring countries has also been successful and there is a lot of carrots available. There is not much trade and the prices mentioned remain unchanged. The DCA Indication Price is €15 to €16 per 100 kilos.
Jurphaas Lugtenburg
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