"Although the potatoes aren't out of the ground yet, there are already a lot of reports in the media about the new potato season. Sometimes you read about disastrous situations and then about the good yields that are expected," says Romain Cools of Belgapom. "As far as the situation in Belgium is concerned, the early season was quite a success. We can't speak of an excellent season, but it also hasn't been a bad one. At the moment there is a limited demand for loose potatoes, which has caused the prices to drop quickly. Last week the price was at 100 Euro per tonne, which is considerably less than last year. And from this week there are also loose storage varieties such as Bintje, Fontane and Challenger being trade, which is putting pressure on early varieties."
Increased potato area
Because the potato market is a speculative market and everyone is spreading different news, Romain confirms that the situation this year is a lot better than last season. "But when you compare this year to years in which we had record turnover, the glass is half empty. The heat and the drought mean that we will have an average harvest at best, with a lot of variation between the plots. What people shouldn't forget either is that the potato area in Belgium and the neighbouring countries has risen since last year. This also has its impact on the overall picture. When we assume an average yield in the sector and link that to the expansion of the area, it gives a certain stability. Most operators suspect we will get a fitting season with fitting prices."
Extreme heat
"Despite the situation being a lot more positive than last year, we have to wait until the potatoes are out of the ground. If the harvest conditions aren't optimal, this can cause added surprises. The question is also whether most plots can expect a lot of growth: the drought and heat that has been announced will cause the growth on many fields to halt. A striking unknown is the long term effect of the extreme July heat on the spuds. In the case of Bintje we know that they hate the heat, but the area of this variety has declined strongly this year. Despite this, no one knows the effects of the extreme heat on storage. Besides this I hear of sprouting here and there, and this can certainly also have an effect."
"I think that a positive feeling of optimism has its place on the market this year. If we get a fitting season with fitting prices on the free market, this would be great. The sector doesn't need the high prices of last year. Too many high prices have a negative effect on our competitive position. But the extremely low prices of two years ago aren't helping the market. Don't forget that for the current season the contract prices for many companies had risen strongly compared to 2018-2019. Despite the panic due to the heat and the drought I think that we can say that the glass is half full this year," concludes Romain.
For more information:
Romain Cools
Belgapom
Sint-Annaplein 3
9290 Berlare
Romain@fvphouse.be
www.belgapom.be