China: New potatoes, high prices

Recently, the new season potatoes in some northern producing areas have gradually entered the market and the stored potatoes have gradually been withdrawn. Compared with last year, supply is good and prices are high. In 2017, the country's potato planting area was too large which led to an oversupply and the price of potatoes was very low. In view of the distressed market conditions last year, many growers have reduced their acreage this year. It is for this reason that the price of the first batch of potatoes increased this year.

In addition, black rickets disease has occurred in potatoes in parts of Heilongjiang this year, with a projected reduction in production of 30%-35% and, due to the early drought, potato production in some areas has also been reduced. Affected by the weather conditions of droughts and floods, the potato in some parts of North China and Northeast China did have epidemics, but it accounted for a small proportion. A small reduction in production will not affect this year's market.

In August, the overall supply of potatoes in the northern region may also be in a state of regional shortage and it is less likely that prices will fall sharply in the short term. But by September and October, potatoes in the northern region will fully enter the market and the price of potatoes may fall.

Source: CNR