Analysis BB Organic
Buyers are cautious on the organic market
The mood among growers of organic potatoes and onions is good. The quality of products in the shed varies widely. That makes traders cautious. There are definitely buyers for good onions and potatoes (and carrots to a lesser extent). Only the processors do not want to keep large working stocks.
The sentiment is not wild in the onions. Last week, traders reported that demand picked up somewhat, but that trend is not continuing. The demand for good onions is there, but finding good onions from growers is not easy. Many parties that come onto the market have a story in one way or another. This does not affect the mood of growers much, but traders are therefore somewhat hesitant. They would rather not burn their fingers on a party that is questionable. The DCA Indication Price for onions this week amounts to €50 to €55 per 100 kilos for fine onions and €53 to €56 per 100 kilos for coarse onions. The top of the listing has slightly lost ground from last week.
The potato trade is going quite well, but according to most traders it is not busy. Packers and processors prefer to keep a small working stock in the current market and wait a relatively long time before buying. First bring in the customer and then go to the farmer to look for potatoes, that seems to be the motto of some buyers.
Prices vary widely
What is paid for potatoes varies widely. The top end of the market for top quality feels solid and the Indication Price of DCA remains at €75 per 100 kilos. The lower limit is more difficult. This is mainly because grower and trader make different agreements. Higher requirements and therefore a higher percentage of tare translate into a higher grower's price and vice versa. The lower end of the DCA Indication Price is €65 per 100 kilos. That is a broad price band, but it is a reflection of what is being paid in the market. It is striking that there is no/hardly any difference between waxy or floury potatoes.
In the carrot market, more compelling supply is released from parties that are declining in quality, especially spots. That gives the mood an extra bite. This in a market that is already not doing great. There is still a demand for good carrots, but traders are not in a hurry. It is on the quiet side. The DCA Indication Price remains the same as last week, at €19 to €21 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.
