Analysis BB Organic
Difference of opinion between grower and buyer on organic market
The mood on the market for organic potatoes, onions and carrots is cautiously positive among both growers and buyers. Yet growers and buyers look at the market in a different way. What does that mean for the DCA Indication Prices?
Organic growers see the dry growing season and the developments in the conventional market and expect that organic should be able to take a step up. The conventional products do lay a hard floor in the organic market. That is something that has been lacking in recent years. The trade is looking more at retail demand and is somewhat hesitant to price organic products out of the market. The group of consumers who are in the doldrums and consciously eat organic will continue to do so at higher prices. Consumers who are less idealistic and struggle with high utility bills and rising living costs will make different choices, according to several traders. The gap between conventional and organic should not be too large.
Market is still searching
The carrot trade is going very well, according to insiders. The yields are not great, but they are not disappointing either. That is different in some parts of Germany where the yields are disappointing. This offers opportunities for Dutch growers. In addition to sales as a fresh product, the industry is also on the market. Partly as a result of this, the DCA Indication Price has taken a step up and is now at €33 to €38 per 100 kilos.
The onion market is fairly balanced at the moment. Sorters still mainly rely on onion sets, but the first seed onions are carefully arriving on the market. Overall quality seems good and yields are likely to be around the multi-year average. The bottom of the DCA Indication Price has taken a big step up from last week to €30 and the top has remained the same at €35 per 100 kilos.
The market for organic potatoes is having a hard time getting going. Growers' expectations vary quite a bit. One grower rejects any offer under $60, while the other farmer seriously considers a $45 offer. Very few transactions have been made yet, but if growers want to sell now, €40 to €45 seems to be the range at the moment.
Jurphaas Lugtenburg
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