Analysis BB Organic
Conventional forms a strong safety net for the organic market
The mood on the market for organic onions and carrots is cautiously improving. Confidence is growing among growers as well as among the trade. The trade in organic potatoes does not really want to get going.
The prices that buyers pay in conventional agriculture provide a solid foundation for the organic market. The price difference with organic is relatively small, which means that organic growers have an extra market, as it were. What does not fit now does not remain above the organic market, but disappears into the regular channel. This keeps the organic market clean and that helps the mood.
Carrots for immediate delivery have been sought. The yields of the early carrots are not easy, partly due to high aphid pressure early in the season and the drought of the last few months. As a result, some rinsers have a thin working stock and are actively looking for carrots. The DCA Indication Price takes another step up and this week amounts to €38 to €43 per 100 kilos.
Doubt
On the onion market, some growers are unsure what to do with the onions. The energy price and therefore the costs for storage have risen sharply compared to last season. The prices paid for onions on the farm are not spectacular, but not bad either. The question is how much confidence do you, as a grower, have in the market that the onion price will really take steps up in the coming months? It doesn't look bad per se. At the moment the onions are still quickly finding a buyer and there does not appear to be a too large stock. However, the previous season is still fresh in the minds of growers. Even then, expectations were high at the start of the season, but that promise was not fulfilled. The DCA Indication price for organic onions this week remains the same as last week at €30 to €35 per 100 kilos.
There is currently hardly any trade in organic potatoes. Agreements have been made in advance for an important part of the sales. In addition, there is hardly any demand for potatoes from Germany. The free trade in potatoes is therefore extremely limited. Due to the limited trade it is difficult to arrive at a price. The DCA Indication Price this week amounts to € 40 to € 45 per 100 kilos, although with a blow to the arm due to the limited number of transactions.
Jurphaas Lugtenburg
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