The total potato harvest in the 5 NEPG countries is estimated at over 28 million tonnes. This increase in production is caused by a larger acreage this season, and extremely favourable growing condition in many NEPG countries. The high sufficiency level has led to sales prices ending up at a low level. Nonetheless, NEPG wants to emphasize positive aspects, which can influence value later during the season.
Alternative directions
This season, significant product quantities have already been taken off the processing market. In Germany, starch plants used large volumes already in August and September, before their own starch potatoes became available. In addition, a rather large quantity was sold for cattle feed and production of alternative energy. The export of fresh potatoes has also gotten started, and expectations on the continent are high.
In many cases, the question is whether the quality of stored product is suitable for long-term storage. This leads to decisions to sell shipments on alternative markets before higher storage costs emerge. This has led to the pressure on the market subsiding for a while. Because of this, large volumes disappeared off the market outside the normal system.
Export opportunities
This season, the dry matter content is low in some crops. This means more commodities are needed for the final product. On the European continent, the processing industry grew quickly in the last 5 years, particularly in Belgium. This season, the processors made use of the low prices for commodities to build up stock. One of the main reasons for increase in commodity use are the export opportunities for the processing industry outside the EU. The export to destinations farther away, outside the EU, has risen enormously in the past 5 years. The NEPG expects a further expansion of export opportunities as a result of lower prices and the Euro-dollar exchange rate.
For more information:
VTA Nederland
Groeneweg 62
4759 BB Noordhoek
tel. +31(0)168 33 59 94
fax. +31(0)168 33 66 73
www.vtanederland.nl