Analysis BB Organic
Expectations and reality diverge on the organic market
The trade in organic potatoes, onions and carrots is at a low ebb. Something is being done, but on the whole the market is tame according to traders. Traders are especially careful with potatoes and onions due to the combination of strongly fluctuating quality and relatively high prices.
According to various traders, the quality of the organic potatoes that are still in the shed is quite good. The relatively high tare percentages do not change, but depending on the wishes of the buyers, there are enough potatoes that meet the requirements.
However, trade is difficult at the moment. Prices are under pressure due to supply from abroad and because buyers expect the demand for new potatoes from the Mediterranean region (especially Egypt) to increase in the not too distant future. Buyers are hitting on sorters and (intermediary) traders with this, while some of the growers still have the prices of a few weeks ago in mind. This creates a stalemate and it remains to be seen who will bite first. The DCA Indication Price this week amounts to €60 to €65 per 100 kilos.
Search for quality
The market for organic onions is dominated by a supply of moderate to downright bad batches of onions. The price of onions is relatively high, according to buyers, and that is why a good quality product has to be matched. Sorters, however, have trouble finding beautiful onions. In the first place, there are not many such parties and growers who have good onions in the shed only supply a limited supply. Farmers with lesser onions do want to say goodbye. Problem parties with internal defects are difficult to get rid of. Due to the relatively large supply of moderate onions, buyers are cautious about doing business, which is not exactly favorable for the mood in the market. The DCA Indication Price remains the same as last week at €50 to €56 per 100 kilos for all grades.
The carrot trade continues to be somewhat difficult. Traders talk a lot about demand from Germany and it is expected that it will increase further due to little local supply. Although it is not busy according to traders, there is still quite a bit of trading being done. At the moment there is little to notice in the price. The DCA Indication Price is €20 to €25 per 100 kilos. Now that the storage season is progressing, batches with problems are also emerging. Peen with a blemish or other quality problem is hard to get rid of. According to insiders, the choice of good parties is too large for that.
Jurphaas Lugtenburg
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