Potatoes are grown and consumed all over the world. In the next few weeks, the season in the northern hemisphere will reach its peak. Northern Europe and North America are coming into full production. The forecasts in Europe are cautiously optimistic. In the US, more volume is in storage than last year. Around the Mediterranean, the seasons for the first early potatoes are coming to an end. Cyprus looks back on a good season with lower volumes, but good prices. Egypt had a difficult start, and the Turkish season has been delayed. In Spain, the acreage decreased significantly due to the bad previous season. In Italy, the production is mainly intended for the domestic market. In South America, there are huge differences in potato prices. Indian exporters reckon with a decreasing demand from Arab countries when the Ramadan starts.
Europe
Although it's still too early to make any concrete statements about the new potato season that will start in the next few weeks, there are cautiously optimistic signals from the Netherlands and Belgium. According to NEPG (North-Western European Potato Growers) figures, the acreage in the north-western countries is decreasing by about 2.5% to a total production of 530,000 hectares. Based on the 5-year average yield of 47.2 tonnes per hectare, combined with the total acreage, the production amounts to 25.2 million tonnes. That's 11.6% less than last year. In the subregions, the season lags behind the normal development a bit.
Belgian season starts later
The Belgian potato season starts later than usual this year. Due to a cold and dryer spring, the harvest won't start until mid-July. Until then, the imported potatoes from Southern Europe are popular. Those yield between 50 and 60 cents. The old harvest is over. The Belgian supermarkets only offer the new harvest potatoes.
Tough 2014 season in the Netherlands, but cautious optimism
The old potato season was particularly bad for a long time, with very low prices for the 2014 harvest as a result. That changed last month after a suddenly increasing demand from Eastern Europe, and export to Africa related to the Ramadan. Demand from the industry also increased. The factories ran at full capacity. Within this sector mainly the Belgian companies showed more interest in the potatoes. The import of new potatoes from the Mediterranean turned out a lot lower.
The Dutch potato season started clearly later than last year. On June 9, the first new harvest came up for auction. Last year, the season started on May 22. The prices, at 60-66 cents for Doré, weren't very high - to compare, the Spanish Doré hadn't come below 90 cents - but buying the new potatoes is becoming attractive to the consumer. Due to the drought, there isn't much growth in the new potatoes yet. And the cold spring and drought of the past weeks threaten to cause a lacklustre potato harvest this year. Although this negatively affects the volumes, growers know that in general, this has a positive effect on the price.
Germany: start own season soon
The supply of domestic potatoes gradually increased in week 24. The Annabelle and Berber potatoes were available on all German markets. Due to stagnating demand, the prices went down. Prices were only stable in Berlin. This week, one trader reports being happy with the prices, which are better than last year. Next week, the trader will begin with the German potatoes.
The import from Cyprus and Morocco decreased. The prices for these potatoes went down as well. In this period of the season, the Mediterranean has lost its competitive edge. Stocks have nearly been exhausted, and transport costs from countries like Portugal and Italy are too high, according to the importer.
German import of organic potatoes from Spain has increased, which means there is less volume left for other markets in Northern Europe. Normally, Germany imports the potatoes from Egypt, but since traces of fertilizer were found on the organic potatoes, the import was halted. In May, there was a lot of interest in the new potatoes from Cyprus and Italy. The prices for Italian potatoes were, on average, twenty cents higher than last year.
United Kingdom harvest delayed
On the British Channel Island of Jersey, small volumes of potatoes are grown, which are mainly popular in the east of the United Kingdom. The cold weather delayed the season, but in general it's a good year. The new harvest is delayed by the weather conditions, and can result in smaller sizes. The Scottish harvest has also been delayed.
French special varieties mainly for domestic market
In France, the new potatoes are doing well. The French potatoes are seen as 'too expensive' outside the country, which means there's hardly any export. The country is known for its special varieties, like the Charlotte, a firm yellow potato, Béa, a floury white potato, and Chérie, a firm red potato. An indication of the prices: Béa yields 80 cents per kilo, the Charlotte yields 90 cents per kilo for the mid- and small sizes. Demand this year is not as high as last year.
Italy: small market, but good prices
The Italian potato production is small, compared to the European production. The country has a share of 3% in the European volume. However, 110 different varieties are described in the national register of varieties. In week 25 (June 1-7), prices for the new potatoes from Apulia decreased significantly, because supplies went up. The potatoes from this region are mostly sold on the domestic market. Small volumes are exported to countries like Germany and Belgium. In those markets, the Italian product is to compete with the Moroccan and French potatoes. In Campania, prices are stable. The harvest in Rovigo started with higher prices compared to 2014. The average price for producers is 31 cents per kilo. That's 18.2% lower than in week 22, but 100% higher than in 2014.
In week 24 (June 8-14) the market was stable, both in supply and in price. Only in Naples and Salerno, the availability of the potatoes increased. The average price for the new potatoes was 30 cents per kilo, which is 2.8% lower than in week 23, but 122.5% higher than in the same period last year. Italians still love potatoes, a recent study shows. Only 5% of the population says they never eat potatoes, compared to 70% of the population who consume potatoes at least once a week.
An overview of the prices on the three wholesale markets in the country over the first two weeks of June give an idea of the prices. Turin:
- French and Dutch yellow potatoes, class 1 (sizes 40-60) in bales: 0.37 cents
- Italian new potatoes, class 1 (sizes 40-60) in crates: 45 to 55 cents
- Italian yellow potatoes, class 1 (sizes 40-60) in bales: 41 cents
- French red potatoes, class 1 (sizes 40-60) in bales: 34 cents
Rome:
- French yellow potatoes, class 1 (sizes 40-60) in bales: 37 cents
- Italian and Dutch yellow potatoes and French red potatoes, class 1 (sizes 40-60) in crates and bales: 50 cents
- Sicilian 'double-crop' yellow potatoes, class 1 (sizes 40-60) in crates: 1 euro
Fondi (only Italian produce):
- Sicilian new potatoes: 65 cents
- Italian white potatoes (size 45-75) in crates: 40 cents
- Emilia-Romagna yellow potatoes (size 45-75) in bales: 45 cents
- Abruzzo yellow potatoes (size 45-75) in bales: 30 cents
- Emilia-Romagna red potatoes (size 45-75) in bales: 40 cents
Lower harvest CyprusThe volumes grown on the Cypriot island are too small to really influence the global market, but the first Cypriot potatoes can count on a loyal customer base in Europe.
The spring season is drawing to a close. Most potatoes have been exported, and part of them is put into storage for the local market. The harvest on the Mediterranean island turned out lower this year, causing demand and supply to be unbalanced. There was a lot of demand from Germany in particular. The export of the potatoes also turned out lower. Main cause for the lower yield is the weather, which destroyed a part of the early harvest. That resulted in a halving of the salad potatoes to Germany and other Central European countries. All in all, there was a loss of 40-50% of the total volume.
Although the harvest was disappointing, the quality is good. The prices were also at a satisfactory level, partly because of the lower volume. The most important varieties are Nicola for the Belgian market, and Spunta for Ireland and Greece.
Spanish acreage a lot lower, but good prices
The acreage of early potatoes turns out 20-25% lower this year. Last year's bad season is particularly to blame for this. In neighbouring Portugal, 40% fewer potatoes were harvested this year. An advantage of the lower acreage for the growers who did stick with the potato cultivation is that the prices have been high since the start of the season in April. The export season for potatoes is nearing its end, the volumes are low.
The growers are seeing demand from other countries increase, causing better prices to be achieved on the foreign markets than on the Spanish market. The highest prices were noted in April-May. The Spanish market prefers cheaper import from countries like France, although the quality is lower. Spanish growers currently get 24 cents per kilo on the export markets for the top quality, and around 18 cents for the normal potatoes. That's 10 cents lower than two weeks ago, but still not bad. These markets are mainly interested in varieties like Anabel, Nicola, Musica, Soprano, Challenger or Melody.
Middle East
In the Middle East, potato consumption is low. Still, one British trader sees opportunities in this market. He says he's gradually entering the market. Remarkably, the consumer's preference is more for a country than a variety.
Turkish season delayed
The Turkish potato season is starting later. The rainy winter months delayed planting, so the new harvest is expected to come to the market one and a half to two months later. While the planting season normally starts in February/March, the seedlings could only be planted late March/early April this year. The Turkish region of Sandikli accounts for 20% of the cultivation in the country. Although the prices for the consumer are high, there is some dissatisfaction among the growers. They are said to offer the potatoes for 10 to 20 cents, while the sellers in a city like Istanbul ask 1.30 to 1.60 euros for the potatoes.
The acreage in the Turkish region has increased this year, from 2000 hectares to between 3000 and 3200 hectares. According to estimates, the production will turn out 30% higher, at 220,000 to 250,000 tonnes.
Israel season better
The Israeli potato season is over. The last shipment has been sent. Looking back, it was a better season than last year, with prices higher on average.
Egyptian season difficult
Compared to last year, the current season, which ends next week, has been bad. Exporters faced a difficult market, but are nevertheless satisfied with the quality and price of the potatoes. The country exported more to Russia. One exporter reports having planted other varieties in order to improve the season's results.
North America
More in storage in the United States
North American storage is more full than last year. On June 1, 14% of the harvest was still in storage. One year earlier, that was 12%. Expressed in volumes, there are 2.9 million tonnes of potatoes now. A year earlier, that was 2.4 million tonnes. One of the causes is the significantly higher 2014 harvest compared to 2013. The biggest volumes are in the states with the highest production: Idaho and Washington. In California there is more interest in, for American standards, special varieties, like Russian Banana Fingerlings, Bintjes, German Butterballs and Yellow Finns. The season for potatoes in this southern state stops when the temperature increases. When the weather is hot, demand for potatoes decreases.
South America
Huge differences potato prices
The prices for potatoes on the South American continent differ widely. For instance, while you have to pay 790 Colombian pesos (0.31 dollars) for a kilo of potatoes in Colombia, the price in neighbouring Venezuela is far higher. There, one kilo of potatoes costs between 250 and 390 bolívars (39.44 - 61.9 dollars). The minimum daily wage in the country, 224 bolívars, is insufficient to buy a kilo of potatoes. The government has set the exchange rate for the currency at 6.3 bolívars for one dollar. The markets, however, set the exchange rate at 390 bolívars per dollar.
Asia
India expects lower demand during Ramadan
The Indian export season is progressing smoothly, an exporter from the south of the Indian subcontinent says. There were no problems with the harvest, and prices are competitive. Important markets for the exporter are Sri Lanka, Singapore, Malaysia, Saudi Arabia, UAE and Oman. With the Ramadan, demand in the Arab countries is expected to go down by about 40%. After the Islamic fast, demand will increase again.
Every week, FreshPlaza publishes an overview of the market situation of a product in a worldwide context. With these articles, we're aiming to give an idea of a global market that's becoming ever smaller as a result of globalization. Next week, the spotlight is on bananas.