Recently, prices of small-sized potatoes used for starch processing in North China went as high as 700 yuan per ton, compared with about 500 yuan per ton in the same period in 2018. Prices of varieties such as Atlantic and Shepody, with a starch content of above 13%, are even higher, fetching nearly 800 yuan/ton. These prices have reached a record high for the last 20 years.
From the end of August, prices of small-sized potatoes in North China have been soaring from the initial 500 yuan/ton to the current 700 yuan/ton. Insiders analyzed that there are five main factors for the high prices this year.
First, North China has been affected by fewer diseases and disasters this year, so the average yield is high and so is the share of large-sized potatoes.
Second, a shortage of transport vehicles have also boosted prices. In previous years, many coal trucks traveled from Inner Mongolia and Shanxi to the Beijing, Tianjin, and Tangshan areas in the autumn and carried potatoes on their way back. This year, affected by environmental protection and road control policies in preparation for China’s 70th National Day, the number of coal transport vehicles has plummeted, leaving fewer transport options for potatoes.
Thirdly, the weather in North China has been good recently and the frost came later this year, so more commercial potatoes have been put into storage and very few potatoes in the field have been damaged by frost.
Last but not least, this year, the planted acreages and total production in China have both decreased, especially in North China, where the planted area is about 20% lower. As the supply of starch processing raw material is tight, prices naturally shot up.
Finally, the prices of potato starch have been high during the period between the start of the year and August, and the demand has been large. Therefore, when the crops became available in the autumn, many starch companies rushed to buy raw materials at high prices, leading prices to remain at a high level.
Source: sjgle.com