Analysis BB Organic
Optimism reigns in the organic market
The mood is good on the organic market. The demand for organic potatoes, carrots and onions is not overly high. Due to relatively high prices in the conventional channel, there is a solid base in the market, which strengthens growers' confidence in the second half of the season.
Growers with good product in the shed are in no hurry to sell, as various traders are noticing at the moment. The prices are at a decent level and given the mediocre European harvest of onions and carrots, demand could pick up even further. But the Dutch organic arable farming sector largely depends on exports. Regional products are certainly preferred by most buyers in the organic segment. That is why German buyers in particular are still reasonably tame at the moment. However, high prices have the downside that buyers are looking more for cheaper products, which could still be a risk for the Netherlands later in the season. "Don't forget to sell them," say some insiders.
Clean market
The conventional onions have made a step upwards in recent weeks and the organic onions are also being pulled along. The coarse organic onions in particular are now also disappearing in the conventional channel. The stock of organic onions for later in the season has shrunk considerably as a result and that keeps the market clean. Prices vary considerably on the organic market. The DCA indication price for coarse onions ranges from €44 to €50 per 100 kilos and for the finer grades from €42 to €48 per 100 kilos.
The organic carrots drain relatively quickly. There will be some extra supply of carrots that are deteriorating in quality. It is striking that very little carrot is shipped to the industry. Almost everything is rinsed and sold in the bag. That is a sign that there is a healthy market according to some traders. The DCA Indication price for organic carrots this week stands at €46 to €50 per 100 kilos.
The market for organic potatoes is very quiet. There are growers with open-air storage who are no longer able to preserve the dormancy of the potatoes. Some growers with mechanical cooling also find it difficult to prevent sprouting. That puts some pressure on the market. These potatoes with a germ on them disappear in most cases towards the processing industry. Prices for these potatoes are well below €30, according to various insiders. The DCA Indication price for good potatoes this week is €32 to €37 per 100 kilos.
Jurphaas Lugtenburg
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