The potato harvest is currently in full swing in the Spanish region of Castile-Leon, with good prospects and very satisfactory sales levels.
"The campaign kicked off strongly in terms of prices when we started selling new potatoes from southern Spain, given the huge demand and the lack of stocks there had been this year in Europe's main producing countries," says Juan Manuel Coello, director of Patatas Meléndez; leader in the production and marketing of potatoes in Spain. “Our exports have therefore been great this year. In fact, a lot of potatoes have been shipped to France, which is something out of the ordinary, considering that it is this country that usually exports large quantities to Spain and the rest of Europe.”
“We have gone through a small bump in recent weeks with the harvest in Castile-Leon, as the earliest potato varieties have arrived in a well-stocked market. Some producers became nervous and reduced their prices from 50 cents per kilo to about 25 cents, but this is still a very reasonable price for this product, given the yields that are being obtained. Now the supply and demand are increasingly in balance and the prospects are good. In fact, the average price in July has been very similar to last year's,” says the director of this company.
The French potato harvest, which is so frequently imported by Spain, is now starting. “Although their prospects were good, it remains to be seen how much of an impact the recent heat waves have had on the yields and quality. There is still uncertainty about it.”
The company markets most of its potatoes (about 80%) in the domestic market, although it also exports significant quantities to the main distribution chains in Portugal and is present in other countries, such as France, Germany, Eastern European Countries etc., with its packaged potatoes.
As pointed out by Juan Manuel Coello, the fact that the two latest campaigns have been so good for all parts of the chain has not caused producers to expand their planted acreage.
“The potato will surely be one of the most profitable agricultural products in Castile-Leon this year. Part of the reason for the success achieved in recent campaigns is the greater planning of the productions together with the growers. We, as leaders, work with contracts and closed agreements with the various operators in the chain, seeking to offer very specific quality standards; that way, we limit the attempts of those producers who are accustomed to planting just to take advantage of speculation and the conditions in the open market. It is increasingly difficult for someone to enter the market without experience; therefore, the acreage remains relatively stable and there are no major differences, while the profits are better for the entire chain. There have been years when growing potatoes wasn't worth the effort, but this will continue to change.”
“In any case, we must not settle, since we have yet to find the formula to boost the growth of fresh potato consumption, given the increasing competition from other carbohydrate sources, such as rice, pasta, bread etc. That will be our challenge in the future,” says Juan Manuel Coello.
For more information:
Juan Manuel Coello
Patatas Meléndez
T: +34 983 812 920
jm.coello@patatasmelendez.com
www.patatasmelendez.com