Things are shifting on the carrot market. There is not a lot of good carrot left and rinsers who want to keep running have to do something. Prices are increasing, especially at the top, but the range remains wide.
The carrot market has found its way up this week. Flushers who were very careful for a long time have changed tack and are largely participating in the prices that growers ask for up to approximately €250 per box. The quality must be good. It is difficult to find the carrot that is suitable for retail and overseas export. That is the segment that the Dutch sector needs. The real bulk work for Eastern Europe has been a bit difficult all season. Now that grower prices are on the rise (and the bale price has to keep up), there is no additional demand from that quarter.
Destination makes the difference
It is by no means certain that the carrot season will continue for a very long time. The available quantity of good carrots in the Netherlands is drying up and the new harvest from Southern Europe is on its way. Egypt is making frantic attempts to get a foot in the door with competitive prices, but according to some insiders they cannot deliver the quality. With the grower price really taking a step, and the price for rinsed product also struggling to make a step, some rinsers are starting to calculate whether it will remain interesting to continue. The first sounds have already come from flushers who, due to moderate margins, think this season is over.
The DCA quotation for both b- and c-carrots has increased by €5 this week, which amounts to €35 to €45 per 100 kilos. The lower end of the quotation is making a step, but it is mainly the better product for which rinsers are willing to pay more.
Read here is the explanation from DCA Market Intelligence on the new quotations.