Analysis BB Organic
Trust is growing in the organic market
Confidence in the market among organic arable farmers was already high and that seems to improve even more towards the second half of the season. Growers know that the supply in Northwestern Europe is definitely not going to last and therefore expect that there will still be room in the prices.
The limited supply of potatoes and onions in particular means that there is also good interest in Dutch products from abroad. The aim to mainly purchase locally - which is certainly an important trend in the organic market - is disappearing into the background in the current market. Growers want to take maximum advantage of this and, according to insiders, that is also badly needed to grow fat on the bones for years of moderate years with more than sufficient supply. This creates tension in the trade. There is often a gap between grower and buyer in terms of price and quality assessment.
More interest in carrot
There is more information about Peen according to various insiders. It is not only Germany that is becoming more popular, but countries from Eastern Europe are also showing an interest in Dutch carrots. In practice, it may turn out that there are slightly fewer carrots in Europe than the market assumed earlier this season. In addition, the expected colder weather in Eastern Europe also plays a role. Local traders want to avoid the risk of having to sell no before the holidays and keep Dutch carrots as an option. The DCA Indication Price is therefore a small step up from last week to €16 to €18 per 100 kilos.
Search for quality
The trade in onions is on the quiet side. There are not many good onions and growers are well aware of this. To some extent, processors can still benefit from onions that have already been agreed upon and do not have to buy them immediately. That is not to say that the trade is not looking for onions. Processors want to, but not at any cost. Growers and trade are holding each other in a bit of a hold. The DCA Indication Price has slightly increased compared to last week to €48 to €50 per 100 kilos for fine grades and €50 to €55 per 100 kilos for coarse onions.
The potato market continues to run steadily. It is not excessively busy, but traders and sorters indicate that they always have something to do. The supply of good potatoes does not stop there. Growers therefore bet high and wait quietly if that price is not yet paid. The DCA Indication Price remains the same as last week at €62 to €68 per 100 kilos for floury and waxy potatoes.
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.
