Analysis BB Organic
Buyers are in charge of the organic market
The trade in organic potatoes, carrots and onions is still somewhat difficult. The regular work continues, but there have been no additional questions or gaps so far. Occasional outliers bring life to the market and are the culprits in the pie, both for the growers and the trade.
In a season like this it becomes clear again that a good relationship between grower and buyer can offer a lot of added value, according to the market. A substantial part of the organic arable farming products is sold outside the traditional chain. This differs from very short chains to growers who sort and pack themselves. When prices and/or revenues are low, every bit of margin counts even more. You see big differences between the growers, according to this source.
Little trade in organic potatoes
There is little trade in organic potatoes. The sorters and packers have their working stocks in order and are therefore limited to the market. The demand for potatoes is also not excessively high, which is one of the reasons why buyers are not keen on expanding their positions. Opinions are divided on which direction the market will take in the last period of the season. One thinks that there is still a gap for the old harvest. For example, due to disappointing circumstances and expensive transport for early potatoes from Spain or the slow start of the new growing season in the Netherlands.
However, other insiders see that there are still a relatively large number of good potatoes in storage and think that we will have our hands full in the near future to get rid of those batches (given the moderate demand). The DCA Indication Price remains the same as last week: €57 to €61 per 100 kilos for firm and floury potatoes.
Onion market is a buyer's market
The market for organic onions is difficult. Good onions are still available, but at the same time there are also many mediocre batches on the market. Those worse parties drag the mood down. Just like in the potato market, the demand for onions is also moderate at the moment. "It's a real buyer's market and the buyers dictate the terms," said an insider.
Price is of course important, but some traders warn you not to stare at it blindly. 'Tricks' are being played left and right to recover a higher grower's price. The DCA Indication Price will remain at €38 to €45 per 100 kilos this week. The mood at the moment? "That which the madman will give for it," said a trader.
Quite a bit of interest in carrot
There is still quite a bit of interest in organic carrots. Spanish carrots are relatively expensive, which is why many German and Dutch supermarkets want to continue with carrots from the old harvest. The quality has to be perfect and the price has to be right. A blemish on demand is the sale of rinsed carrots that are not suitable for retail.
The industry is hardly on the market for coarse carrots. Feed remains as the most important sales channel and a floor price is paid there. The DCA Indication Price is therefore taking a step back and this week amounts to €16 to €20 per 100 kilos.
Jurphaas Lugtenburg
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